What is a whistleblower reward?

A whistleblower reward is money that the state or federal government provides to encourage people to come forward and report wrongdoing or illegal activity in their place of work. In Mississippi, the Securities and Exchange Commission provides rewards to whistleblowers for providing evidence of securities law violations, such as insider trading. Whistleblower rewards are generally given to individuals who provide original information that leads to successful enforcement actions yielded from the investigation. In order to be eligible for a whistleblower reward, the information must be voluntarily supplied and must lead to a successful enforcement action resulting in a monetary sanction from the government. The amount of the reward is based on a percentage of the amount the government collects from the violator. The Mississippi Securities Laws require that the whistleblower’s reward must be at least 10 percent, but could go as high as 30 percent. The reward can also be increased to a maximum of 100 percent of the sanctions collected, if the whistleblower provides information leading to a successful enforcement action.

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What is a whistleblower reward?

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