SEC Whistleblower Program
Report an SEC violation and get a monetary reward.
Whistleblower Reward Laws
False Claims Act
SEC Whistleblower Program
IRS Whistleblower Program
CFTC Whistleblower Program
Table of Contents
The SEC Whistleblower Program encourages individuals to report securities law violations, such as fraud or insider trading, by offering financial rewards and protection. Whistleblowers who provide original information that leads to a successful SEC enforcement action may receive a reward ranging from 10% to 30% of the monetary sanctions collected. The program also provides confidentiality and safeguards against retaliation, making it a powerful tool for promoting corporate transparency and accountability.
History of the SEC Whistleblower Program
The SEC Whistleblower Program was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This program was created to encourage individuals to report securities law violations by offering monetary incentives and protections against retaliation. Since its inception, the program has significantly contributed to the SEC's ability to detect and address fraud, leading to numerous enforcement actions and substantial financial penalties against wrongdoers.
Elements of a Claim under the SEC Whistleblower Program
A claim under the SEC Whistleblower Program must involve the voluntary submission of original information related to a possible violation of federal securities laws. The information provided must lead to a successful enforcement action by the SEC, resulting in monetary sanctions exceeding $1 million. The whistleblower must provide specific, credible, and timely information that the SEC has not previously received.
The SEC Whistleblower Program Process
The process begins with the whistleblower submitting information to the SEC using Form TCR (Tip, Complaint, or Referral). The SEC evaluates the tip, and if it leads to a successful enforcement action, the whistleblower may be eligible for a reward. The SEC investigates the claim, and if the information proves valuable, sanctions are imposed on the violators. The whistleblower then applies for a reward using Form WB-APP. The SEC reviews the application and determines the reward amount, which can range from 10% to 30% of the collected sanctions.
The SEC Whistleblower Reward
The SEC Whistleblower Program offers monetary rewards to individuals who provide original information leading to successful enforcement actions with sanctions exceeding $1 million. The reward can range from 10% to 30% of the total monetary sanctions collected. The exact percentage is determined by the SEC based on various factors, including the significance of the information provided and the level of assistance the whistleblower and their legal representative offer during the investigation.
Key Features of the SEC Whistleblower Program
Key features of the SEC Whistleblower Program include anonymity, anti-retaliation protections, and substantial financial incentives. Whistleblowers can report anonymously if represented by an attorney. The program also provides legal protection against employer retaliation, ensuring whistleblowers cannot be demoted, suspended, or harassed for reporting misconduct. The significant financial rewards aim to encourage individuals to come forward with valuable information about securities law violations.
Anonymous Reporting: The SEC Whistleblower Program allows individuals to report securities violations anonymously if they are represented by an attorney, providing a layer of protection for whistleblowers who wish to maintain their privacy. This feature encourages individuals to come forward without fear of personal exposure.
Anti-Retaliation Provisions: The SEC Whistleblower Program offers strong anti-retaliation protections. These protections ensure that whistleblowers are shielded from any adverse actions by their employers, such as demotion, suspension, harassment, or any other form of retaliation, safeguarding their career and livelihood.
Financial Incentives: One of the most compelling features of the SEC Whistleblower Program is the substantial financial incentives. Whistleblowers can receive between 10% and 30% of the monetary sanctions collected as a result of their information, creating a powerful motivation for individuals to report securities violations and contribute to enforcement efforts.
These protections collectively create an environment where whistleblowers can report fraud and misconduct with a degree of security and assurance that their rights and well-being will be safeguarded.
