The SEC announced the results of its latest effort to crowdsource public market regulation on Monday, saying that it is going to be paying $10 million to a whistleblower who it says helped expose financial misconduct and helped the agency bring a successful enforcement action.
The SEC cites the whistleblower's "persistent efforts" as part of the reason they are receiving the award.
Jane Norberg, Chief of the SEC's Office of the Whistleblower, said: "This award recognizes the persistent efforts of the whistleblower to expose serious financial misconduct."
"This whistleblower also provided extensive and ongoing assistance to the investigative team over the course of the investigation, including identifying witnesses and helping staff understand complex fact patterns and issues related to the matters under investigation," she said.
In sum, the SEC has awarded about $520 million to 94 separate people since issuing its first whistleblower award in 2012. Payments for the awards 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," the release notes.
Whistleblowers can be eligible for an award when they provide the SEC with "original, timely, and credible information that leads to a successful enforcement action," according to the agency.
Awards often range from 10% to 30% of money collected when sanctions bestowed by the SEC exceed $1 million.