SEC Awards $2.5 Million Whistleblower Award To Government Employee

The Securities and Exchange Commission announced a whistleblower award to a federal employee of almost $2.5 million on Tuesday. The government employee, who the SEC did not name, became aware of improper conduct by a company, which the regulator is also barred by law from naming, and provided original information to the SEC that resulted in an enforcement action. Employees of a federal, state, or local government agency can be eligible for an award under the Dodd-Frank whistleblower program, subject to limited exceptions. The SEC's announcement emphasized that in reporting the misconduct to the SEC, the employee did not bypass any potential responsibilities of his or her employer to investigate or otherwise take action regarding the alleged misconduct.