SEC issues largest ever whistleblower award of $279 million

WASHINGTON: The U.S. Securities and Exchange Commission (SEC) has issued its largest ever award of nearly $279 million to a whistleblower whose information helped the regulator's enforcement action, it said on Friday.

The regulator did not disclose the case concerned in its statement.

The award is more than double the $114 million that it had issued in October 2020.

"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, director of the SEC's Division of Enforcement, in a statement.

Payments to whistleblowers are made out of an investor protection fund that was established by Congress and financed entirely through monetary sanctions paid to the SEC by securities law violators.

Awards to whistleblowers can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.

"The whistleblower's sustained assistance including multiple interviews and written submissions was critical to the success of these actions," said Creola Kelly, chief of the SEC's Office of the Whistleblower.