The Securities and Exchange Commission (SEC) announced a $300,000 whistleblower award to an employee in a company’s audit and compliance division according to a recent SEC press release. The employee reported internally, but went to the SEC after the company refused to take action. The information from the whistleblower led directly to a SEC enforcement action.
“Individuals who perform internal audit, compliance, and legal functions for companies are on the front lines in the battle against fraud and corruption. They often are privy to the very kinds of specific, timely, and credible information that can prevent an imminent fraud or stop an ongoing one,” said Sean McKessy, Chief of the SEC’s Office of the Whistleblower. “These individuals may be eligible for an SEC whistleblower award if their companies fail to take appropriate, timely action on information they first reported internally.”
SEC whistleblowers may be eligible for 10 to 30 percent of the amount collected. By law, the SEC must protect whistleblower identities.
To report fraud, please contact Frohsin & Barger.