Compliance Officer Gets Whistleblower Award

The U.S. Securities and Exchange Commission (“SEC”) recently announced an award of $1.4 – $1.6 million provided to a compliance officer of a large company. Neither the company’s nor the officer’s name was made public due to confidentiality laws, but the information was reported to having pertained to significant financial harm to the company and/or its investors.

The SEC’s whistleblower program rewards high-quality, original information that leads to an SEC enforcement action with sanctions exceeding $1 million.  The award is generally 10 percent to 30 percent of the money collected, but is sourced from an investor protection fund established by Congress at no cost to taxpayers or harmed investors.  It is instead financed through monetary sanctions paid by securities law violators to the SEC.

These related articles provide information on whistleblower best practices.

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