Search Site
Menu
Dodd-Frank Whistleblower Program 2016 Report Shows Rise in Activity

On November 15, the U.S. Securities and Exchange Commission (SEC) issued its yearly report on the Office of the Whistleblower, created through the Dodd-Frank Act of 2010. Under the program, anyone who submits original information that directly results in enforcement actions for securities violations leading to fines of more than $1 million is eligible for an award worth 10 to 30 percent of those sanctions.

Each year, the SEC issues the annual report to summarize the whistleblower complaints received that year and how the agency responded to them. This past year was the busiest yet for the Office of the Whistleblower, with more claims submitted and awards granted since 2011.

The following is a quick overview of some of the information included in the report:

  • In 2016, the SEC issued awards worth more than $57 million to whistleblowers, a figure that was higher than all previous years under the program combined.
  • Six of the top 10 largest whistleblower awards of all time were issued in 2016.
  • The total amount of awards issued to whistleblowers since 2011 is now more than $100 million.
  • The SEC received more than 4,200 tips from would-be whistleblowers in 2016, the largest number of tips the program has received in its history.
  • The most common categories of whistleblower complaints submitted to the SEC were corporate disclosures and financials (22 percent), offering fraud (15 percent) and manipulation (11 percent).
  • Whistleblower complaints came from people in 48 states, Washington, D.C., Puerto Rico and 67 foreign nations.
  • Nearly 65 percent of all award recipients so far were either current or former employees of the company the action was taken against. Approximately 80 percent of those individuals reported their concerns internally before going to the SEC.

The incentives the SEC has established in recent years makes it easier and more advantageous than ever for whistleblowers to come forward with complaints. To learn more provide the SEC and other regulators with tips, meet with a knowledgeable Dallas attorney at Whistleblower Law for Managers.

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra