U.S. SEC grants $5 million to tippers

Jan 13, 2017 (Reuters) – The U.S. top markets regulator announced Friday that it would award $5 million to a whistleblower whose tip led to a successful enforcement action.

Creola Kelly from the Securities and Exchange Commission’s whistleblower office stated that the whistleblower gave not only helpful information, but also “substantial ongoing aid”.

The Dodd-Frank reforms to securities laws, enacted after the 2008 financial crisis, allow the SEC to reward whistleblowers by drawing money from a fund that includes monetary penalties.

As whistleblower protection is important, the statement does not identify the subject of enforcement actions.

A Friday order was also made public. Officials said that another claimant in the same case, seeking a similar reward, was denied a payment because the information provided was not “vague.”

According to SEC, in 2022’s fiscal year that ended September, 103 awards were made for $229 Million. This marked the Commission’s second highest year by dollar amount and number of awards. (Reporting by Douglas Gillison; Editing by William Maclean