Big Payday: SEC Awards Whistleblower $82 Million

The Securities and Exchange Commission has announced an anonymous whistleblower will receive $82 million for information and assistance in an investigation.

The tip prompted the opening of SEC investigations, and thereafter provided critical additional information and ongoing assistance, the agency said on Friday.

A second whistleblower, whose information was provided later, significantly contributed to one aspect of the actions and will receive an award of $16 million.

"Whistleblower information and cooperation play an integral role in the SEC's enforcement efforts," said Creola Kelly, Chief of the SEC's Office of the Whistleblower. "Without these whistleblowers' information, the violations would have been difficult to detect."

The SEC protects the confidentiality of whistleblowers so they will not be identified.

The target of the investigation was not released to make sure the tipster is not able to be identified.

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

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.

Whistleblower awards can range from 10 to 30 percent of the money collected when the monetary sanctions exceed $1 million, meaning the target of the investigation paid at least a $273 million fine.