It seems as if the whistleblower provisions of the 2010 Dodd-Frank financial reform act are starting to gain momentum, as the Securities and Exchange Commission (SEC) announced the latest award, more than $150,000, given as part of the program.
This is not the largest award the SEC has handed out as part of the whistleblower program. That distinction goes to a Sept. 30 award that topped $14 million. Still, the news that the SEC has given another award gives a clear sign that the Commission is taking the program seriously.
The SEC handed out this particular award to an individual whose information helped put an end to a scheme defrauding investors. According to a release from the organization, the recipient does not wish to be named, but he or she provided important information that led to an investigation and allowed the SEC to prevent additional investors from coming to harm.
The Dodd-Frank Act allows for payouts of up to 30 percent of the money collected in enforcement action that ensues from a reliable tip. The intent of the clause is to encourage workers to report to the SEC potential fraud or wrongdoing in corporations.
“This is continued momentum and success for the SEC’s whistleblower program that is bringing our investigators valuable and timely information to stop ongoing frauds before additional investors can be harmed,” said Sean McKessy, chief of the SEC’s Office of the Whistleblower, in a statement.
For more information on the Dodd-Frank Act, check out the stories below: