SEC Awards More Than $300,000 to Whistleblower with Audit Responsibilities

The SEC awarded more than $300,000 to a whistleblower whose high-quality information and continuing assistance significantly contributed to a successful enforcement action, according to an SEC release. The whistleblower became aware of the potential securities law violations in connection with audit-related responsibilities. Although individuals with audit or compliance responsibilities are generally not eligible for awards, a whistleblower who reasonably believes that an entity is engaging in conduct that would impede the investigation falls within one of the exceptions to that rule, the SEC said.  This is the fourth time the agency has paid a whistleblower with internal audit or compliance related responsibilities. “This award is an example of the important role that audit and compliance professionals can play in assisting the Commission's enforcement efforts, especially when the entity is attempting to thwart an investigation,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The whistleblower attempted to remedy the conduct and provided exceptional assistance to the enforcement staff.”