The SEC’s whistleblower program was established in the Dodd-Frank Act of 2010, and in the decade since then, it has amassed an impressive record as an effective law enforcement tool. It essentially requires the SEC to pay whistleblowers an award of between 10% and 30% of any monetary sanction exceeding $1 million that the SEC obtains in an enforcement action that is based on original information provided by the whistleblower. It has incentivized those with critical and hard-to-uncover evidence about securities fraud to come forward notwithstanding enormous personal and financial risk. And it has been a resounding success by any measure.

As a direct result of the Program, the SEC has been able to file scores of new enforcement actions; halt countless ongoing violations of law; prevent massive harm to investors; hold innumerable law violators accountable; and put hundreds of millions of dollars back in the hands of defrauded investors.

The SEC Whistleblower Program has profoundly improved the SEC’s ability to detect, punish, and deter securities fraud while helping injured investors recover their losses. As a result, the SEC is more effectively pursuing its three-part mission of protecting investors, maintaining the integrity of the securities markets, and facilitating capital formation. Due to the enforcement efforts made possible by the whistleblower program, investors have more confidence in the securities markets. That in turn helps ensure that investors can safely invest in markets and reap the returns they offer, while entrepreneurs and companies have access to the capital they need to start and grow their businesses.

Read our complete Report here, or click the button below. See our Press Release here.