(Reuters) – The Securities and Exchange Commission (SEC) said on Friday that it had made its largest-ever payout of over $279 million to a whistleblower whose information aided the regulator’s enforcement action.
In its statement, the agency did not name the instance in question.
The award is more than twice what it was in October 2020, when it was worth $114 million.
“As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations,” said Gurbir Grewal, head of the Securities and Exchange Commission’s Division of Enforcement, in a statement.
Payments to whistleblowers are given from an investor protection fund created by Congress and solely funded by monetary penalty paid to the SEC by securities law offenders.
When monetary punishments surpass $1 million, whistleblowers might be awarded 10% to 30% of the money collected.
“The whistleblower’s sustained assistance, including multiple interviews and written submissions, were critical to the success of these actions,” said Creola Kelly, head of the SEC’s Office of the Whistleblower.