Who Can Receive a Reward as a Whistleblower?

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd Frank Act”), the term “whistleblower” includes any individual who provides, or two or more individuals acting jointly who provide, information relating to a violation of the securities laws to the Commission, in a manner established, by rule or regulation, by the Commission.  A person entitled to receive a reward under the Dodd-Frank Act is, therefore, one or more individuals who provide original information about a violation of the federal securities laws that leads to the successful enforcement of a covered judicial or administrative action, or a related action, as defined by the Act.

The Dodd-Frank Act prohibits the SEC from providing a reward to a whistleblower who is convicted of a criminal violation related to the judicial or administrative action for which the whistleblower provided information; who gains the information by auditing financial statements as required under the securities laws; who fails to submit information to the SEC as required by an SEC rule; or who is an employee of the DOJ or an appropriate regulatory agency, a self-regulatory organization, the PCAOB, or a law enforcement organization.

Bernstein Liebhard LLP is dedicated to providing experienced, dedicated, and aggressive representation for whistleblowers looking to report violations of the federal securities laws to the SEC.  If you have questions about your eligibility as a whistleblower under the SEC Whistleblower Program, contact Michael S. Bigin or Laurence J. Hasson.