The SEC Whistleblower Program Rewards Whistleblowers For Reporting Violations of the Securities Laws
The Securities and Exchange Commission (“SEC”) Whistleblower Program was created by Congress in 2010 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd Frank”). The SEC Whistleblower Program offers awards to whistleblowers who report possible violations of the federal securities laws that lead to successful SEC enforcement actions. The Dodd-Frank Act also created a whistleblower program for the Commodities Futures Trading Commission (“CFTC”), which rewards whistleblowers for information regarding violations in the trading of commodities and on the currencies exchanges.
Whistleblowers are entitled to an award of between 10% and 30% of the monetary sanctions collected by the SEC and related actions brought by certain other regulatory and law enforcement authorities. Importantly, the SEC Whistleblower Program also offers SEC whistleblowers employment protections and the ability to report possible securities violations anonymously.
The SEC Whistleblower Program has been a huge success and has enabled the SEC to uncover significant investment fraud schemes and halt ongoing fraud. Since the inception of the program, the SEC has paid more than $385 million in awards to whistleblowers and has recovered over $2 billion in financial recoveries.
In 2018, the SEC paid more than $168 million to whistleblowers and recovered over $500 million in sanctions from companies engaging in securities fraud violations.
Experience is important
Bernstein Liebhard LLP has litigated some of the largest securities fraud class actions since the passage of the Private Securities Litigation Reform Act of 1995 and our SEC Whistleblower attorneys have substantial experience fighting securities fraud. We are dedicated to providing experienced, dedicated, and aggressive representation for whistleblowers looking to report violations of the federal securities laws to the SEC.
If you choose to blow the whistle on violations of the federal securities laws, the attorneys at Bernstein Liebhard will help you navigate the SEC Whistleblower Program to ensure that you comply with the program’s requirements and avail yourself of the program’s anti-retaliation protections. Contact Michael S. Bigin or Laurence J. Hasson for more information.