SEC Awards $1 Million Bounty to Insider Trading Informant
The SEC has awarded a $1 Million bounty to an informant who provided key evidence that led to significant civil penalties in an insider trading case against a hedge fund, its principals and the tipper. The informant is the ex-wife of a Microsoft employee who, according to the SEC, provided a hedge fund with material non-public earnings information to a hedge fund with whom he sought (and obtained) employment. The informant discovered internal company e-mails that her ex-husband failed to provide in response to SEC requests. The SEC noted that the new Dodd-Frank Act allows the SEC broad authority to award bounties to parties who provide information leading to monetary sanctions in a broad range of cases.