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U.S. SEC awards $5 million to tipster

Published 01/13/2023, 01:54 PM
Updated 01/13/2023, 01:57 PM
© Reuters. FILE PHOTO: People exit the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly

(Reuters) - The top U.S. markets regulator on Friday announced a $5 million award to a whistleblower whose tip-off it said had resulted in a successful enforcement action.

The whistleblower not only provided helpful information but "substantial ongoing assistance," Creola Kelly, head of the whistleblower office at the Securities and Exchange Commission, said in a statement.

Under sweeping reforms to securities laws known as Dodd-Frank and enacted following the 2008 global financial crisis, the SEC can reward whistleblowers with moneys drawn from a fund comprising monetary penalties collected by the agency.

The statement did not identify the subject or nature of the enforcement action as details are withheld to protect the whistleblower.

© Reuters. FILE PHOTO: People exit the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly

According to an order also released Friday, a second claimant also seeking a reward in the same case was denied a payout because officials found the information provided was "vague," among other reasons.

According to the SEC, the 2022 fiscal year, which ended in September, the agency made 103 awards for a total of $229 million, marking the Commission's second-highest year by number of awards and dollar amount.

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