National Whistleblower Day

The Securities and Exchange Commission (SEC) awarded over $2 million to whistleblowers in the past two days, reflecting the strong whistleblower provisions in the Dodd-Frank Act. 

One whistleblower was awarded more than $1.6 million for providing information leading to a successful enforcement action for violations of securities law. In the award order, the SEC said the whistleblower provided unique information, helped substantiate claims, and saved investigators time and resources.  

Today, the SEC announced whistleblower awards for two individuals of more than $570,000.  The first whistleblower received an award of approximately $478,000, and the second whistleblower received an award of roughly $94,000. Under the whistleblower protection provisions of the Dodd-Frank Act, the identities of the whistleblowers are kept confidential.

“This matter highlights the importance of the SEC’s whistleblower program to the agency’s enforcement efforts and to its ability to maximize staff resources,” said Jane Norberg, chief of the SEC’s Office of the Whistleblower. “The violations would have been difficult to detect without the whistleblower’s information and assistance,” she continued. Norberg said the reason one whistleblower received a much higher sum in today’s award was that he or she provided information early in the investigation.  

The SEC says it has awarded approximately $395 million to 74 individuals since its first award in 2012. Securities and commodities fraud is regulated by the Dodd-Frank Act, which requires payment to whistleblowers of between 10 percent and 30 percent of monetary sanctions collected if the penalties exceed $1 million. Dodd-Frank is one of several federal, state, and local laws that encourage whistleblowing by offering protections and rewards.