SEC Whistleblower earned more than $ 9.2 Million for working with DOJ

The U.S. Securities and Exchange Commission (SEC) today announced a spy award of more than $ 9.2 million awarded to an individual who reported successful related activities by the Department of Justice (DOJ). ).

This spy has previously been rewarded for donations for SEC enforcement action, making them eligible for related follow-up action rewards.

This award marks the first SEC spy award based on a non-prosecution agreement (NPA) or a deferred prosecution agreement (DPA) since major changes to the SEC’s Spy Program have become effective. 7 December 2020.

Under the award order, the SEC blower provided the Commission with important information about ongoing fraud, provided an opportunity to return large sums of money to damaged investors, and traveled at their own expense to meet the DOJ.

Under the Dodd Frank Act, SEC blowers who report initial fraud information to the Commission may be eligible for spy rewards if the sanctions collected from enforcement actions exceed $ 1 million.

Since their first award was presented in 2012, the SEC’s Spying Office has awarded more than $ 750 million to 136 people. Blowers who file award claims with the SEC promise full confidentiality and confidentiality.

“This award reflects the Commission’s decision that a traitor’s certificate for an award should not depend on the procedural vehicle selected by a federal agency to resolve a rape case,” said Jane Norberg. Head of the SEC Spy Office. “Eligible spies, such as today’s award winner, will be rewarded no matter what route was used to successfully complete the case. ”

Ben Kostyack also contributed to this article.

Copyright Kohn, Kohn & Colapinto, LLP 2020. All rights reserved.National Law Review, Volume XI, No. 54