Earlier this week, the U.S. Securities and Exchange Commission announced that it would award $20 million to an anonymous whistleblower who "promptly came forward with valuable information that enabled the SEC to move quickly and initiate an enforcement action against wrongdoers before they could squander the money." In 2016 alone, the SEC has now awarded over $70 million to whistleblowers. This award is the Commission's third largest since the whistleblower incentive program launched five years ago, boosting the program's award total to more than $130 million to date.
A whistleblower who voluntarily provides information to the Commission that leads to successful enforcement actions of $1 million or more is entitled to an awards in an amount between 10 and 30 percent of the money recovered. For more information about the SEC Whistleblower Program, download a free copy of Katz, Marshall & Banks' SEC Whistleblower Practice Guide.