The Securities and Exchange Commission (SEC) (SEC) announced on Monday that it would pay about $22 million in bonuses to two whistleblowers who provided information about securities violations at a financial services company.
SEC said the first whistleblower's report triggered the agency's investigation, so he would receive most of the bonus, or $18 million; the second whistleblower, who provided information after the SEC investigation began, would receive a bonus of $4 million.
SEC's whistleblower incentive system, established in the wake of the global financial crisis of 2007-2009, has generated fines of more than $2.5 billion by fiscal year 2020. SEC said it had paid out $838 million to 156 whistleblowers since the first bonus was paid out in 2012. All payments come from the investor protection fund set up by Congress, funded entirely by fines paid to SEC by institutions and individuals who violate securities laws.
In Monday's statement, SEC did not disclose the names of whistleblowers and companies accused of violations, in line with the federal government's confidentiality policy on information that may disclose the identity of whistleblowers.