As part of the 2010 Dodd-Frank Act, the Securities and Exchange Commission created a program to make awards to individuals who provide original information leading to a successful enforcement action that results in monetary sanctions in excess of $1 million.
These awards range from 10 percent to 30 percent of the sanctions the SEC collects in the enforcement action and are paid out of the SEC’s investor protection fund. The first award, totaling $50,000, occurred in 2012. Last year, the SEC paid out more than $14.8 million, including one award totaling $14 million, to whistleblowers.
