The US Securities and Exchange
Commission (SEC)
has launched a whistleblower programme.
The aim of
the programme is to help report violations of the federal securities laws and apply for a
financial award, implementing the Dodd-Frank whistleblower programme.
To be eligible, the whistleblower’s
information must lead to a successful SEC enforcement action with
more than $1m in monetary sanctions.
“Early and quick law enforcement action
is the key to preventing securities fraud and avoiding investor
losses, and the whistleblower program gives us the tools to help
achieve that goal,” SEC’s division of enforcement director Robert
Khuzami said.
SEC’s Office of the whistleblower chief
Sean McKessy said: “Securities fraud is not a victimless crime.
That’s why it is so important for people to step forward when they
witness an ongoing securities fraud or learn about one that has
taken place or is about to occur.”
