The U.S. Securities and Exchange Commission will award $17 million to a former company employee whose tip significantly helped the federal agency close an investigation regarding a “major player in the financial-services industry,” according to a press release issued Thursday.
“The information and assistance provided by this whistleblower enabled our enforcement staff to conserve time and resources and gather strong evidence supporting our case,” SEC Enforcement Chief Andrew Ceresney said in a statement Thursday.
The SEC compensated whistleblowers with 10 to 30 percent of collected money if it is greater than $1 million, indicating the agency’s collection rate in this case was substantial.
It’s the second highest payout the agency has ever given a source in the five-year history of the whistleblower program. The agency has awarded 32 tipsters more than $85 million in that time.
“Each significant monetary award raises the profile of the SEC whistleblower program and the number of people willing to come forth,” Jordan Thomas, chair of Whistleblower Representation Practice at law firm Labaton Sucharow, told Bloomberg. “It’s a good day for the program. It rewarded someone for having the courage to speak up.”
The identify of the whistleblower will remain anonymous for his or her safety.
