The Securities and Exchange Commission (SEC) has issued the largest rewards for whistleblowers under the Dodd-Frank Act, setting a new record at more than $33 million.
The SEC announced Monday that it had rewarded two whistleblowers with $50 million to be split between them and gave another roughly $33 million. The previous record for the largest whistleblower reward issued by the SEC was $30 million, set in 2014.
The Dodd-Frank Act, passed in 2010 to crack down on risky and predatory investment in the wake of the financial crisis, expanded rewards and protections for employees of financial firms who reveal illegal activity at their company.
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“These awards demonstrate that whistleblowers can provide the SEC with incredibly significant information that enables us to pursue and remedy serious violations that might otherwise go unnoticed,” said Jane Norberg, chief of the SEC’s whistleblower office.
“We hope that these awards encourage others with specific, high-quality information regarding securities laws violations to step forward and report it to the SEC.”
The SEC says it rewards whistleblowers that provide “original, timely, and credible information that leads to a successful enforcement action.” The agency doesn’t reveal their sources’ names or the probes they assisted in when announcing the rewards.
Rewards can range from 10 to 30 percent of funds above the $1 million the SEC obtains through the case against the whistleblower’s employer.