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SEC Whistleblower Program Receiving Tips From Around the Globe

After a year since its establishment, the Securities and Exchange Commission’s new whistleblower program has received 334 domestic whistleblower tips according to the agency’s annual report on the implementation of the Dodd-Frank Act program.

Between the effective date of the program, August 12, 2011 and September 30, 2011, the SEC received 32 tips from foreign sources including 10 in China and 9 in the United Kingdom.  In the United States,  the most tips came from California (34), followed by New York (24), and Florida (19).  The most common allegations were corporate disclosures and financial statements (15.3%), offering fraud (15.6%), and market manipulation (16.2%).  (For a copy of the report please click here.)

On January 5, 2010 the 111th Congress of the United States enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”).  Whistleblowers who voluntarily provide original information to the Securities and Exchange Commission (“SEC”) that results in monetary sanctions exceeding $1,000,000 are entitled to awards ranging between 10% and 30% of the amount collected of the monetary sanctions imposed in the action or related actions by the SEC.  Awards are paid from the SEC Investor Protection Fund, which had a balance of $452,788,043.74 as of September 30, 2011. 

When a final judgment or order results in monetary sanctions exceeding $1 million, the SEC will issue a Notice of Covered Action.  As of February 1, 2012, the SEC has already posted 230 Notices of Covered Action on its web site. 

 


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