SEC rewards ‘overseas’ whistleblower

The U.S. Securities and Exchange Commission said Tuesday it awarded an overseas whistleblower $500,000.

In a brief announcement, the SEC said the whistleblower’s “expeditious reporting” helped the agency bring a successful enforcement action.

The SEC’s redacted award order (pdf) didn’t provide other details about the whistleblower or the company involved.

(By law, the SEC protects the confidentiality of whistleblowers and doesn’t disclose information that might reveal their identity.)

Whistleblowers can be eligible for an award when they voluntarily provide the SEC with “original, timely, and credible information” that leads to a successful enforcement action.

Awards can range from 10 percent to 30 percent of the money collected when penalties are more than $1 million

The SEC has now made awards to at least four “overseas” whistleblowers.

In 2014, an overseas whistleblower collected $30 million. At the time it was the largest award under the SEC’s award program.

In 2017, a foreign national working outside the United States was awarded $4.1 million for providing information about “a widespread, multi-year securities law violation.”

Last year the SEC awarded an overseas whistleblower $4 million for “extensive assistance” that led to a successful enforcement action.

The SEC said Tuesday it has now awarded $385 million to 65 individuals since its first whistleblower award in 2012.

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Richard L. Cassin is editor at large of the FCPA Blog.