SEC Whistleblower Program
The Securities and Exchange Commission (SEC) Whistleblower Program provides a reward to those who report violations.
In the wake of the 2008 financial crisis, Congress established the Securities and Exchange Commission (SEC) Whistleblower Program as part of the Dodd-Frank Wall Street Reform and Consumer protection Act. The program provides a reward for whistleblowers who report violations of the securities laws, if the information reported by the whistleblower results in sanctions exceeding $1 million. Other key aspects of the program include anonymous reporting and protection from retaliation.
The reward for successful reporting ranges between 10% and 30% of the amount recovered, provided that the sanctions exceed the $1 million threshold.
Whistleblower claims for reporting securities law violations cover a broad range of misconduct, including:
Mispricing of stock
Violation of the Foreign Corrupt Practices Act (FCPA)