The U.S. Securities and Exchange Commission yesterday said that it issued a $20 million award in a case involving a tipster who came to the agency early on, enabling it to secure a “near-total recovery” of investor funds in a matter, the Wall Street Journal reported. Citing federal law, the SEC declined to reveal the tipster’s identity. However, the SEC said in a statement that the tipster’s quick reporting prevented the wrongdoers from squandering the money. The reward announced yesterday is the agency’s third largest ever. The SEC’s whistleblower program, developed under the Dodd-Frank Act, gives tipsters 10 percent to 30 percent of a penalty for a securities violation if that penalty exceeds $1 million. Including yesterday’s announcement, the SEC has issued more than $130 million in rewards under the program.
