The US Securities and Exchange Commission has rewarded three people who alerted it to a well-concealed fraud that targeted HNW retail investors.

The information led to penalisation. The informants, who were themselves harmed investors, will share a payment of more than $260,000 amongst them.

Jane Norberg, the chief of the SEC’s Office of the Whistleblower, told reporters: “Because of the whistleblowers’ information and assistance early in the investigation, the SEC had strong evidence about a fraudulent scheme operated by recidivist violators. This matter exemplifies the importance of the SEC’s whistleblower programme to the agency’s enforcement efforts and commitment to protect investors.”

The SEC has awarded approximately $387 million to 70 people since 2012, when it issued its first award in accordance with the Dodd-Frank Act.  All payments are made out of an "investor-protection fund" established by Congress that is financed entirely through monetary sanctions paid to the SEC by people who break the securities laws. The SEC has never taken or withheld any money from harmed investors to pay awards to tipsters. To qualify, one has to "provide the SEC with original, timely, and credible information that leads to a successful enforcement action." Such awards can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.