Numbers speak loudly regarding evaluations surrounding the anti-fraud whistleblower program established by the U.S. Securities and Exchange Commission back in 2011 pursuant to the enactment of the federal Dodd-Frank legislation.
Here’s an example: Whistleblowers coming forward with key tips helping regulators spotlight and punish securities fraud collected more money in the past fiscal year than in all other years combined since the program’s inception.
“Success always breeds success,” says one commentator noting that the SEC’s decision to grant more and larger rewards to individuals coming forward to report securities-linked malfeasance has brought marked success. Reportedly, the agency awarded more than $168 million to whistleblowers within the past year. The outlay prior to that – spanning a 6-year period – was $158 million.
Indeed, the Office of the Whistleblower has been busy like never before. Examiners have scrutinized nearly 5,300 tips this past year, with information on securities fraud forthcoming from individuals across the country and from more than 70 other nations.
Ironically, the SEC is citing the program’s very success as justification for potentially scaling it back. Officials are concerned that awards are too big in larger cases and might need to be pared. Broad-cased critics lambast that idea, stressing that the sizable money disbursements are precisely what spurs the greater inflow of information that is proving helpful to the SEC.
Questions concerning the Dodd-Frank whistleblower program can be directed to Shepherd, Finkelman, Miller & Shah, LLP. Our attorneys represent whistleblowers nationwide from multiple offices spanning the country.