On October 30, 2013, the SEC announced that it rendered a $150K award to an anonymous whistleblower whose tips allegedly helped thwart a scheme to defraud investors (click here for the Order). The bounty equals 30% of the proceeds the SEC collected in the enforcement action—the maximum percentage permitted.
In its press release, the SEC stated:
The award recipient, who does not wish to be identified, provided significant information that allowed the SEC to quickly open an investigation and obtain emergency relief before additional investors were harmed.
However, there is no specific indication as to whether the tipster reported internally before contacting the SEC.
Though the SEC issued a $14M award earlier this month, the most recent award is in line with the more modest SEC payouts of months past. Nevertheless, each SEC bounty likely encourages others employees to step forward and seek awards. And many predict that the $14M award will lead to an influx of tips. Stay tuned…