Whistleblower Receives $300,000 Payment from the SEC
After a public company failed to take action when one of its employees internally reported potential fraud, the Securities and Exchange Commission (“the Commission”; “SEC”) awarded over $300,000 to the whistleblower for notifying the agency of the wrongdoing. Announced on Friday, the Commission said it was notified of the fraud attempt when the employee’s concerns went ignored after 120 days from the initial report.
Given authority to pay out awards for securities law violations by the Dodd-Frank Act, the SEC keeps the identity and information of whistleblowers confidential. However, while the whistleblower is an audit and compliance professional, the agency remarked this was the first award given to an employee who worked in such a capacity at a company.
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