Nearly half a million dollars paid to 'insider' whistleblower in Ontario case
Ontario market watchdog has paid out $9.33 million to whistleblowers since 2016
A whistleblower who tipped the Ontario Securities Commission about wrongdoing at an organization where they worked has been paid a reward of nearly half a million dollars by Canada’s largest capital markets regulator.
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The identity of the whistleblower and the case are kept confidential under the OSC’s program, the only securities regulator whistleblower program in the country to pay for information that leads to successful enforcement action.
Since its creation in 2016, modelled on a similar program operated by the U.S. Securities and Exchange Commission, the OSC whistleblower program has paid out $9.33 million to whistleblowers.
In the latest individual case to result in an award — which can be up to $5 million, calculated in a range of five to 15 per cent of total monetary sanctions ordered by the commission — the tip from an insider allowed the OSC to collaborate with other regulators to obtain the additional evidence needed to pursue the case.
The insider, who was ultimately paid $481,000, submitted highly-detailed information and valuable insights, according to the OSC. They continued to provide assistance throughout the investigation and subsequent regulatory proceeding, including responding to requests for further information, demonstrating that the whistleblower program allows authorities to get information that could not otherwise be obtained, the market watchdog said.
“The important information they provided fuelled our investigation into wrongdoing and helped us deliver strong and timely enforcement action that protected investors from further harm,” said Jeff Kehoe, director of enforcement at the OSC.
“The success of our program is predicated on the courage of whistleblowers who make the decision to be heard.”
Tips from around the world have led to successful enforcement action against 19 respondents, resulting in about $48 million in monetary sanctions and voluntary payments, among other sanctions, the OSC said.
• Email: bshecter@postmedia.com | Twitter: BatPost
