Whistleblower Wins Half-Million Dollars for Exposing Company Misdeeds

US Securities and Exchange Commission announced that a company insider who exposed misconduct that lead to successful enforcement action has been awarded $500,000.

WASHINGTON (Sputnik) — A company insider who exposed misconduct that lead to successful enforcement action has been awarded $500,000, the US Securities and Exchange Commission (SEC) announced in a press release on Tuesday.

"This company employee saw something wrong and did the right thing by reporting what turned out to be hard-to-detect violations of the securities laws," SEC Office of the Whistleblower chief Jane Norberg stated in the release.

About $154 million has been awarded to 44 whistleblowers, who have voluntarily provided the SEC with original and useful information that led to a successful enforcement action, the release explained.

"Company insiders are in a unique position to provide specific information that allows us to better protect investors and the marketplace," Norberg said. "We encourage insiders with information to bring it to our attention."

The SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity, the release noted.

Whistleblower awards can range from 10 percent to 30 percent of the money collected when monetary sanctions exceed $1 million, according to the release.