The Securities and Exchange Commission announced a whistleblower award Friday of more than $3 million to a company insider whose information helped crack a complex fraud.
It was the third biggest award under the SEC’s whistleblower program that launched in 2011.
“The whistleblower’s specific and detailed information comprehensively laid out the fraudulent scheme which otherwise would have been very difficult for investigators to detect,” the SEC said.
Whistleblowers who provide the SEC with “unique and useful information” can collect up to 30 percent of the financial sanctions in cases with recoveries of at least $1 million.
By law, the SEC protects the confidentiality of whistleblowers. It doesn’t intentionally disclose information that might directly or indirectly reveal a whistleblower’s identity.
SEC enforcement director Andrew Ceresney said Friday, “Insiders may hold the key to helping our investigators unlock intricate fraudulent schemes.”
The SEC’s whistleblower program has paid more than $50 million to 18 whistleblowers since 2011.
Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.