SEC Issues $114 Million to Two Whistleblowers

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SEC Issues $114 Million to Two Whistleblowers
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The SEC on Wednesday issued $114 million to two whistleblowers, part of the more than $1 billion the agency has now paid to individuals since its cash-for-tip program began

The SEC announced the awards Wednesday but didn’t name the cases involving two companies that the awards are connected to and didn’t identify the tipsters, in keeping with its policy.

“Today’s announcement underscores the important role that whistleblowers play in helping the SEC detect, investigate and prosecute potential violations of the securities laws,” SEC Chairman Gary Gensler said in a statement. The awards and the milestone are another reminder that companies need to commit to compliance and ensure they address issues raised internally, according to Gregory Keating, a whistleblower defense attorney for employers at law firm Epstein Becker & Green PC. “For employers, this is a clarion call that you need to embrace best practices and training,” he said.

to a person whose information helped the SEC and another agency bring successful enforcement actions against a company.

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