US pays record amount to whistleblower in corporate crime case
U.S. pays record $279 million to whistleblower in Ericsson corruption case, reports The Wall Street Journal. The US Securities and Exchange Commission (SEC) was investigating illegal payments that the company made in a number of countries to obtain contracts. In 2019 SEC reportedthat, as part of an agreement with regulators, Ericsson agreed to pay a $1.1 billion fine for giving bribes and kickbacks to officials in China, Saudi Arabia, Indonesia, Vietnam, Kuwait and Djibouti. As a result, the company was making millions in profits through illegal activities in violation of the US Foreign Corrupt Practice Act (FCPA).
The SEC itself does not disclose either the name of the whistleblower or the amount he received for cooperation. Under SEC rules, whistle-blowers assisting in the investigation of corporate crimes receive between 10% and 30% of the total amount that the company pays as part of an agreement with regulators.
Previous record was $114M SEC paid informant this amount in October 2020, also without disclosing either his name or the case in which he received the reward.