The SEC just submitted its 2019 Annual Report on its Whistleblower Program to Congress, which proves – again – that whistleblowers perform a vital public service by revealing fraudulent and illegal conduct. The SEC’s Whistleblower Program was created in the Dodd-Frank Act and designed to reward and protect whistleblowers.
As a result of the Program, the SEC has received tens of thousands of high-quality tips, market intelligence and information that has resulted in sanctions of more than $2 billion on fraudsters and crooks. Of that $2 billion, more than $500 million has been or will be returned to victimized and defrauded investors – money they most likely would have never gotten back, and even worse, the fraud would have likely gone on longer causing more harm. Simply put, the Program has been a game-changer in terms of investor protection and fraud detection and prevention.
Yet, despite this success, the SEC is proposing significant changes to the Program that risk snatching defeat from the jaws of victory and that would violate the Dodd-Frank Act. These proposed changes put investors needlessly at risk and increases the likelihood of fraud going unreported and therefore undetected, as Better Markets detailed in a comment letter submitted to the SEC. The SEC’s own 2019 Annual Report proves that the Program should not be changed. Better Markets will continue to fight attempts to weaken the Whistleblower Program and investor protections.