A company insider was recently awarded more than $1.7 million by the Securities and Exchange Commission pursuant to the SEC’s securities fraud whistleblower program. Whistleblowers who provide the SEC with original and credible securities fraud tips may be eligible to receive an award ranging from 10% to 30% of the money collected by the SEC. The identify of the whistleblower is confidential; however the SEC did acknowledge that that the awardee was “a company insider who provided the agency with critical information to help stop a fraud that would have otherwise been difficult to detect.”
Although the SEC will take reasonable measures to protect the confidentiality of whistleblowers. Whistleblowers who submit a securities fraud tip through an attorney can do so on a totally anonymous basis.
See related blog post: A Securities Lawyer’s Advice to Would-be Whistleblowers