SEC awards whistleblower with third-largest award

Financial regulators announced plans Tuesday to give a whistleblower a $5 million to $6 million award — the third-largest it’s ever given.  

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The Securities and Exchange Commission (SEC) protects the identities of company insiders but said the detailed tip it received led the agency to uncover securities violations that would have been nearly impossible for it to detect otherwise. 

“Employees are often best positioned to witness wrongdoing,” Andrew Ceresney, director of the SEC’s Division of Enforcement, said in a statement. “When they report specific and credible tips to us, we will leverage that inside knowledge to advance our enforcement of the securities laws and better protect investors and the marketplace.”

In September 2014, the agency gave more than $30 million to a whistleblower, exceeding the prior highest award of more than $14 million announced in October 2013. 

Since its inception, the SEC has awarded more than $67 million to 29 whistleblowers, including one for more than $3.5 million announced last week.