Law360, New York (July 31, 2014, 6:48 PM ET) — The U.S. Securities and Exchange Commission on Thursday announced an award of more than $400,000 to an unnamed whistleblower who reported a fraud to the agency after company involved failed to address the issue internally despite several alerts.
The SEC said the whistleblower provided the agency with timely and credible details that allowed for a more rapid investigation that exposed underlying misconduct. The agency did not disclose the nature of its enforcement action.
“The whistleblower did everything feasible to correct the issue internally,” Sean McKessy, chief of the SEC’s Office of the Whistleblower, said in a statement. “When it became apparent that the company would not address the issue, the whistleblower came to the SEC in a final effort to correct the fraud and prevent investors from being harmed.”
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