$1 Million+ Awards Attract More Whistleblowers
Last week, the Securities and Exchange Commission (SEC) announced the latest whistleblower award. The unnamed compliance officer at an unnamed company, will receive a relatively high award of $1.4 million to $1.6 million. The individual apparently alerted the SEC when he or she believed “that disclosure to the SEC was necessary to prevent imminent misconduct from causing substantial financial harm to the company or investors.”
With awards exceeding $1 million, financial institutions are certainly vulnerable to whistleblower complaints, be them warranted, unwarranted, or premature. In its statement, the SEC said that it has paid more than $50 million to 16 whistleblowers since the agency started its whistleblower program in 2011, averaging more than $3 million per whistleblower.
- SEC Press Release: http://www.sec.gov/news/pressrelease/2015-73.html