Join us on LinkedIn Follow us on Twitter Like us on Facebook
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

SEC whistleblower gains more than $1.25 million

Add This Email A Friend Printer Friendly Version Increase Text Size Decrease Text Size
0 comments
Tuesday, September 22, 2020

A whistleblower whose significant information prompted the Securities and Exchange Commission (SEC) to initiate a cause examination and bring an enforcement action that resulted in the return of millions of dollars to harmed investors has been rewarded.

The SEC said the whistleblower in the case will receive more than $1.25 million, part of more than $500 million in awards since 2012.

“The whistleblower’s expeditious reporting alerted the agency to previously unknown securities violations,” said Jane Norberg, chief of the SEC’s Office of the Whistleblower, in a press release announcing the award. “This whistleblower’s vigilance and prompt reporting helped the agency move quickly to protect investors, resulting in the return of millions of dollars to harmed investors.” 

However, a redacted SEC file about the award shows the possibility that the whistleblower could have received even more money.

The document states that the Claims Review Staff at the SEC issued a preliminary determination, recommending the whistleblower receive an award amount, which was redacted in the file.

The SEC, however, rejected the determination.

“After considering the administrative record, we choose to depart from the preliminary determination’s recommendation and award claimant (redacted) of the monetary sanctions collected or to be collected in the covered action, for a payout of over $1.25 million,” the document stated.

Left unsaid because of the redactions is whether the original award was more or less than what the SEC agreed to in its final determination. In addition, another whistleblower applied for an award in the same action but was denied.

The SEC has awarded more than $507 million to 90 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.

Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.

Today's other top stories
UWM, Rocket Mortgage tension hits breaking point
SBA prioritizes ‘mom-and-pop’ businesses
Final rule on civil money penalty inflation adjustment issued
NCUA approves joint-ownership share accounts final rule
OCC releases 2021 Dodd-Frank stress test scenarios


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
CAPTCHA Validation
CAPTCHA
Code:
: 
: 
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 6468 times.

Monthly Newsletter

Dodd Frank Update March 2021

Cover Story:

CFPB releases supervisory highlights on prioritized assessments


Tweets from @DoddFrankUpdate/lists/industry-news
News by Topic   News by Edition   News by Agency   News by Industry   Special Reports   Webinars
Banking
Case Law
Consumer Protection
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update December 2020
Dodd Frank Update January 2021
Dodd Frank Update February 2021
Dodd Frank Update March 2021
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Investment Adviser
Land Title
Mortgage
Mining and Manufacturing
Payday Lending
 
State of the Industry
Mortgage Technoloy
New Rules of Compliance
CFPB Anniversary
The New GSE Focus
Archives
 
Getting to Know Your Regulators
RESPA Section 9
Economic Forecast - Q1
Streamlining the HMDA Process
Archives

Library   About   Subscribe   Store
The Dodd-Frank Act Position Papers
Dodd-Frank Summary & History Legislation
Court Actions Regulations
Enforcement Documents Reports, Studies and Surveys
Guidance Documents Federal Register Notices
White Papers  
 
Dodd Frank Update
Contact / Editors
Advertise
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
NS3 The Summit
Other Newsletters
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2021 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
INDUSTRY
SPECIAL REPORTS
LIBRARY
WEBINARS
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Consumer Protection
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Investment Adviser
Land Title
Mortgage
Mining and Manufacturing
Payday Lending
2021 State of the Industry
2020 Mortgage Technology
New Rules of Compliance
2020 CFPB Anniversary Report
The New GSE Focus
Archives
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
RESPA Section 9
Economic Forecast Series - Q1
Getting to Know Your Regulators
Streamlining the HMDA process
Webinar Archives
Contact Us
Advertise
Social Media
Are You An Expert?
Subscriber Agreement