SEC Awards First Whistleblower Payment

The SEC announced that it awarded its first award to a tipster pursuant to the whistleblower program adopted last year. The SEC awarded $50,000, 30% of the amount collected. The recipient could receive as much as $300,000 if the SEC collects the full amount of the sanctions. The SEC denied a second claimant “because the information provided did not lead to or significantly contribute to the SEC’s enforcement action, as required for an award.” Sean McKessy, Chief of the SEC’s Whistleblower Office, said, “The fact that we made the first payment after just one year of operation shows that we are open for business and ready to pay people who bring us good, timely information.” Mr. McKessy said that the SEC receives about 8 tips per day.