The U.S. Securities and Exchange Commission (SEC) recently released its 2019 Annual Report to Congress overviewing its highly successful whistleblower award program. According to the report, the program continues to protect investors and promote a strong market integrity while richly rewarding people who come forward with unique, actionable information in a timely manner.
Since the program was established, the SEC has recovered more than $2 billion in sanctions from wrongdoers.
Here are some of the highlights featured in this year’s report:
- In Fiscal Year 2019, the SEC received more than 5,200 tips. This marks the second-largest number of tips it’s received in a single fiscal year so far, and 74 percent more than what it received in its first year of existence.
- Over the year, the SEC paid whistleblower awards adding up to about $60 million.
- Approximately 85 percent of award recipients from this year first raised concerns internally before proceeding to report through the SEC.
- Seven award recipients received payments based on collections made in “related criminal or other qualifying related actions.”
- About 68 percent of the whistleblowers who were awarded provided original information that resulted in the SEC opening the investigation, and the remainder received awards because original information “significantly contributed” to an investigation that was already ongoing.
- About 69 percent of whistleblowers were current or former employees of the entity subject to the claim.
- In total, more than 33,000 whistleblowers have filed tips with the SEC, and so far 70 have received an award.
For more information about how to submit a whistleblower claim through the SEC’s whistleblower program, we encourage you to contact an experienced whistleblower attorney at Kardell Law Group.