Business

SEC gives whistle-blower $50,000

WASHINGTON — The Securities­ and Exchange Commission has awarded $50,000 to a whistle-blower in its first payout from a program started last year to reward people who provide regulators with evidence of securities fraud.

The whistle-blower helped the SEC bring an enforcement action that resulted in more than $1 million in sanctions, the agency said Tuesday. The award represents 30 percent — the maximum allowed under the Dodd-Frank Act — of the approximately $150,000 collected so far.

The agency set up a whistle-blower program in August 2011 to reward individuals who provide evidence of securities law violations that results in sanctions of more than $1 million. The program was authorized in the 2010 financial-regulation overhaul, which said awards could range from 10 percent to 30 percent of the money collected.

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The SEC, which did not name the whistle-blower or identify the enforcement action, said it rejected a claim from a second person in the same matter because the information the person provided did not lead to or significantly contribute to the action.

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Bradley Bondi, a former SEC attorney who is now a partner at Cadwalader, Wickersham & Taft LLP in Washington, said that even though the award is relatively small in this case, it’s notable that the SEC awarded the maximum amount it could under the rules.

Bloomberg News