The Securities and Exchange Commission (“SEC”) announced a nearly $50 million whistleblower award to an individual who provided firsthand observations of a company’s misconduct that led to a successful enforcement action and the return of a significant amount of money to harmed investors.  According to the SEC, this is the largest amount ever awarded to one individual under the SEC’s whistleblower program.

Created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC whistleblower reward program allows whistleblowers who report violations of the securities laws to receive rewards of 10 to 30 percent of the amount the government collects in successful enforcement actions over $1 million (including penalties, disgorgement, and restitution).  The SEC has awarded over $500 million to 83 individuals since issuing its first award under the program in 2012.

Read the SEC press release here. 

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