The Securities and Exchange Commission (the “SEC”) announced that it was awarding a whistleblower more than $2.2 million on April 5, 2018 using the “safe harbor” provision of the Securities Exchange Act of 1943.
The whistleblower, a former company insider, first reported the information to another federal agency and later provided the same information to the SEC. The information helped the SEC open an investigation that led to an enforcement action.
While not the highest amount awarded to a whistleblower by the SEC, the award is significant as it is the first award paid under the “safe harbor” of The Securities Exchange Act of 1934 Rule 21F-4(b)(7). The rule treats whistleblower information as though it had been submitted to the SEC at the same time that it was submitted to another federal agency as long as that same whistleblower information was submitted to the SEC within 120 days of first filing.