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The Daily

SEC Awards $700,000 to Outsider Whistleblower

By:
Chris Gaetano
Published Date:
Jan 19, 2016
'Metal whistle'. Licensed under CC BY-SA 3.0 via Wikimedia CommonsFor the first time, the Securities and Exchange Commission (SEC) has given a whistleblower payout to an outside industry expert, versus someone within the company, according to CFO.com. The whistleblower, whom the SEC did not identify, was an industry expert who voluntarily submitted a detailed analysis that pointed to wrongdoing going on at a company, which the SEC also did not identify.The tip turned out to be on the money, which led to the whistleblower receiving a $700,000 payout from the SEC. While whistleblowers are typically associated with company insiders, namely employees or former employees, there is nothing in the regulation that prevents outsiders from providing information. All that's required to count as a whistleblower, according to the SEC, is that they "voluntarily provides us with original information about a possible violation of the federal securities laws that has occurred, is ongoing, or is about to occur."