A unnamed whistleblower who provided investigators with information regarding an "ongoing fraud" in the financial industry will be paid $30 million for the tip by the Securities and Exchange Commission. SEC Enforcement Director Andrew Ceresney said the "record-breaking award sends a strong message about our commitment to whistleblowers and the value they bring to law enforcement,'' according to Reuters.
The Dodd-Frank law aimed at curtailing Wall Street transgressions--put in place in 2010 in the wake of the financial crisis--allows the SEC to pay far more to whistleblowers than it previously had the authority to pay. Payments are conditional--the information provided must lead to enforcement action and penalties against the cheater. The idea is that the fines the SEC then imposes on those they catch will replenish the funds the SEC pays to the whistleblowers.
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