The Securities and Exchange Commission (SEC) paid a whistleblower a $110 million bonus for information that led to enforcement action, bringing the total amount of payments under the whistleblower's plan to more than $1 billion.
The whistleblower received the second-highest bonus ever, including $40 million from SEC and $70 million from a lawsuit filed by another agency, according to a statement on Wednesday. According to SEC's whistleblower plan, the whistleblower will also receive a bonus if the information provided by the whistleblower motivates another agency to take sanctions.
"the announcement of the bonus today highlights the important role played by whistleblowers in helping SEC detect, investigate and prosecute potential violations of securities laws," SEC Chairman Gary Gensler said in a statement.
Since the first bonus in 2012, SEC has paid out bonuses to 207whistleblowers. In cases where the fine exceeds $1 million, the reported individual is eligible for a bonus ranging from 10 to 30 per cent of the fine.
SEC does not identify the whistleblower or the company accused of misconduct, and this information may reveal the identity of the whistleblower.
The highest bonus for a single whistleblower is $114 million in October 2020.