SEC Makes another Payment to First Whistleblower, Possibly More on the Way

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The Securities and Exchange Commission’s whistleblower office announced that it will be making another payment to the first-ever whistleblower, Wall Street Journal reports. Furthermore, the whistleblower may be getting even more payouts from the agency in the future. The additional payments are due to the language of the 2010 Dodd-Frank financial reform bill, which helped establish the whistleblower program. Through this program, the SEC awards individuals who give the agency information that leads to legal enforcement action. They anonymous tipster, or “whistleblower”, can receive between 10% and 30% of the money recovered from that action.

Under Dodd-Frank, the payments made to the whistleblower are related to the amount the agency recovers; this can be less than the amount ordered in a case, according to Wall Street Journal.
The initial award was handed out in 2012. It was for 30% of sanctions in relation to an unnamed “multi-million dollar fraud”. The agency collected $150,000 of the $ 1million in ordered penalties, resulting in $50,000 for the whistleblower at the time. Now, the SEC has collected more money in the case and announced on Friday that the tipster will be receiving an additional $150,000. The whistleblower may get $100,000 or more moving forward, the SEC said.