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SEC Changes Mind, Awards $400K to Once-Rejected Whistleblower

Joe Mont | July 31, 2014

On Thursday, the Securities and Exchange Commission reversed an earlier decision and decided to award a $400,000 bounty to a whistleblower. The claim, which reported fraud to the SEC, was initially dismissed because a self-regulatory organization was already investigating the matter.

Due to anonymity protections, SEC background on the case was sparse. This whistleblower provided the agency with “specific, timely, and credible information” after having tried, “on several occasions and through several mechanisms,” to have the matter addressed internally at the company, a statement says. A twist on the case is that the claim was initially denied “because the information did not appear to have been ‘voluntarily’ provided… because of a prior inquiry into the matter conducted by a self-regulatory organization,”...

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