What It Covers
The SEC whistleblower program is a component of the Dodd-Frank Wall Street Reform and Consumer Protection Act that went into effect on July 21, 2010. It provides rewards and protections to whistleblowers who report violations of federal securities laws and regulations that have occurred, are ongoing, or are about to occur. The statute prohibits retaliation against employees who report SEC fraud.
How It Works
A whistleblower must complete and submit SEC Form TCR either through the Commission’s online portal or by mail or fax. The information must be submitted under penalty of perjury. If you submit the information anonymously, you must provide contact information for an attorney if you wish to collect an award. The whistleblower must disclose the violation to the SEC before a government authority requests information or within 120 days of reporting the violation internally. The SEC reviews all submissions. Complaints that appear to be serious and substantial are moved on for further review, possible designation as a Matter under Investigation, and additional prosecution by the SEC or related agencies. If a matter reaches a final judgment or order resulting in more than $1 million in monetary sanctions, the SEC posts a Notice of Covered Action. Following the posting, a whistleblower may seek a monetary award. Additional information may be found in the SEC’s Division of Enforcement Manual.
If the amount recovered exceeds $1 million, a whistleblower may receive a payment of between 10% and 30% of monetary sanctions collected as a result of an action brought by the SEC depending on the quality of information provided.