SEC Awards Whistleblower for Original Analysis

A whistleblower who assisted the SEC in an investigation by furnishing it with a “detailed analysis” constituting “original information” was awarded more than $700,000. The SEC determined that the whistleblower provided the SEC with “unique and useful” information leading to a successful enforcement action.

Lofchie Comment: This case communicates that the SEC will award an “outsider,” for providing original information (here, presumably for analyzing market data) that leads to a successful enforcement action, rather than awarding only a corporate insider. It’s an award about which we may feel better than (in the worst case) one that was given to a company insider who did not attempt to correct the problem internally but went directly to the government in the hopes of collecting reward money.

 

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