10 June, AtoZForex — The Securities and Exchange Commission (SEC) is famous for its Whistleblower programme. The rewards given out provided many insights into investigations against injustice related to frauds and FX manipulations. Yesterday the regulator stated in the announcement that it gave the second biggest award equal to $17 million to a former company employee “whose detailed tip substantially advanced the agency’s investigation and ultimate enforcement action.”
Over $85 million has been rewarded
The award is the second largest in the history of SEC Whistleblower programme. The agency’s biggest award of $30 million was issued in September 2014. The SEC has been very active, as it rewarded five individuals with the total sum of $26 million. Since the beginning of the Programme in 2012, the agency awarded more than $85 million to 32 whistleblowers, which is quite an impressing figure.
Any information about the case?
We know that by law, The SEC is obligated to protect the identity of the whistleblower by any means and it does not disclose any information, which might breach the confidentiality by pointing directly or indirectly to the person. However, the main mystery is to which case did the whistleblower contribute?
Andrew Ceresney, SEC Enforcement Chief said on Thursday, when announcing the award:
“The information and assistance provided by this whistleblower enabled our enforcement staff to conserve time and resources and gather strong evidence supporting our case.”
Whereas Chair of the Whistleblower Representation Practice at Law company, Jordan Thomas, commented about the case saying that his client is the only whistleblower who received the reward and the case involves A “major player in the financial services industry”.
Who can participate in the SEC Whistleblower programme?
Whistleblower can receive the award if he/she voluntarily provides the SEC with unique information, which will help the agency to take successful enforcement action. The awards usually make up 10-30% of the money collected from sanctions of more than $1 million.
The agency believes that company insiders are “uniquely positioned” to protect the investors by blowing the whistle on their company’s wrongdoings. By developing SEC Whistleblower programme, the agency hopes that the awards will motivate potential whistleblowers to make the right choice to speak out and report the crimes they witnessed. If you want to get more information about the Whistleblower’s programme and its requirements, please visit the website of the regulator.
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