SEC Pays First Whistleblower Bounty Award

From Corporate Law Report:

On August 21, 2012, the Securities and Exchange Commission announced that it has awarded its first ever bounty to an individual who provided evidence that led to a conviction for securities law violations.

The SEC’s bounty program was established by the Dodd-Frank Act to reward whistleblowers between 10% and 30% of money collected in SEC enforcement actions that involve more than $1 million in sanctions.

Details of the “multi-million dollar fraud” revealed by the whistleblower are not available (as required by law). But the payout nevertheless offers three takeaways for publicly traded companies…

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