The SEC awarded $14 million to a whistleblower who exposed ongoing market fraud.
The whistleblower, who days later shared the same information with the SEC prompted the opening of an investigation which resulted in the return of millions of dollars to harmed investors, according to the SEC report.
The news comes after Gary Gensler had advised in an interview with Jon Stewart that the SEC needs whistleblowers to come out for enforcement to actually occur.
Let’s discuss it more below.
Welcome to Franknez.com – with margin calls happening in every corner of the financial sector now could be a great time for whistleblowers to come forth.
Let’s dive right into it!
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“Whistleblowers can play a critical role in an investigation”
Chief of the SEC’s Office of the Whistleblower Creola Kelly said whistleblowers can play a critical role in an investigation.
She says cases like this demonstrates the importance of whistleblowers reporting directly to the SEC so that the agency can promptly investigate allegations of wrongdoing.
The SEC has awarded approximately $1.2 billion to 249 individuals since issuing its first award in 2012, according to the report.
Payments are made out of an investor protection fund established by Congress.
The money comes from the pocket of the violators paid to the SEC.
The SEC says whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action.
How much money do whistleblowers get paid?
Whistle blower awards can range from 10% to 20% of the money collected when the monetary sanctions exceed $1 million.
Who are these whistleblowers?
The SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity based on the Dodd-Frank Act.
The SEC did not provide further details about the investigation.
The market needs a whistleblower boom to start moving the market in the right direction for the next generation.
For decades now, Wall Street has been stealing from retail investors through predatorial short selling activities.
Heavily shorted stocks with no probability of bankruptcy continue to be targets for hedge funds with overleveraged short positions.