The SEC Whistleblower Program was established under the Dodd-Frank Act in 2010 to encourage individuals to report violations of federal securities laws. The program is administered by the Securities and Exchange Commission (SEC) and offers monetary rewards to whistleblowers who provide original information that leads to successful enforcement actions.
A whistleblower is any individual or group who voluntarily provides original, timely, and credible information about possible violations of securities laws. Eligible violations may include:
Insider trading
Misrepresentation in financial statements
Market manipulation
Bribery of foreign officials (FCPA violations)
Ponzi schemes and fraudulent investment practices
The SEC Whistleblower Program offers:
Monetary Awards – Whistleblowers can receive 10% to 30% of the total monetary sanctions collected if the case results in penalties exceeding $1 million.
Confidentiality – The SEC protects whistleblower identities to the fullest extent permitted by law.
Protection Against Retaliation – Employers are prohibited from firing, demoting, harassing, or discriminating against whistleblowers who report wrongdoing.
Gather Evidence – Collect relevant documents, emails, or other materials supporting the violation claim.
File a Tip (TCR Submission) – Submit a Tip, Complaint, or Referral (TCR) form to the SEC via its online portal or by mail.
SEC Investigation – The SEC reviews the claim and determines whether to initiate an investigation.
Enforcement Action – If the SEC takes action and recovers more than $1 million, the whistleblower may be eligible for a financial award.
Claim an Award – If eligible, the whistleblower submits an application for an award after the enforcement action concludes.