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SEC Doles Out Record WhistleBlower Award

The_Office_of_the_WhistleblowerSEC_Symbol-300x187New York (HedgeCo.Net) – The SEC has awarded over $400,000 to an un-named whistleblower who reported a fraud to the SEC after the company failed to address the issue internally.

“The whistleblower did everything feasible to correct the issue internally. When it became apparent that the company would not address the issue, the whistleblower came to the SEC in a final effort to correct the fraud and prevent investors from being harmed,” said Sean McKessy, chief of the SEC’s Office of the Whistleblower. “This award recognizes the significance of the information that the whistleblower provided us and the balanced efforts made by the whistleblower to protect investors and report the violation internally.”

10 to 30% of the money collected in a case can be awarded to the whistleblower who gives original information that results in an SEC enforcement action with sanctions exceeding $1 million. By law, the SEC must protect the confidentiality of whistleblowers.

This whistleblower provided the agency with specific, timely, and credible information that allowed for a more rapid investigation than otherwise would have been possible. The whistleblower had tried on several occasions and through several mechanisms to have the matter addressed internally at the company.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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