The SEC takes a lot of sh!t on Wall Street, because no one likes the vice principal type in their life.
Mary Jo and Co. are not about to give up on making the financial watchdog at least a little cool to some of the people in the financial sector. And in keeping with the vice principal metaphor, the SEC is cozying up to the hall monitor types. The narcs observant and brown-nosers honest folks who just want to rat out their colleagues keep things fair on The Street.
But don't take our word for it, take it direct from SEC:
The Securities and Exchange Commission today announced that it will award between $5 million and $6 million to a former company insider whose detailed tip led the agency to uncover securities violations that would have been nearly impossible for it to detect but for the whistleblower’s information.
That's a nice little haul for some loose lips.
But this is just a taste, you guys. The SEC is willing to pay up big for some hot tips.
Today’s award is the SEC’s third highest to a whistleblower. In September 2014, the agency announced a more than $30 million whistleblower award, exceeding the prior highest award of more than $14 million announced in October 2013. Since the inception of the whistleblower program in 2011, the SEC has awarded more than $67 million to 29 whistleblowers, including one for more than $3.5 million announced last week.
However, those tips better be fire. Like 10-digit-malfeasance-kinda-hot.
Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. All payments are made out of an investor protection fund established by Congress that is financed through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.
Which leads us to wonder, who got $5 million to $6 million for 10% to 30% of a sanction? As always, we'll take your guesses in the comments.