Since the Securities and Exchange Commission whistleblower-program went into effect on July 21, 2010, the SEC has processed more than 25,000 tips and awarded over $2 billion to whistleblowers. Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act to incentivize whistleblowers to report potential securities violations. Whistleblowers are guaranteed 10% to 30% of sanctions collected due to their tips and from any related action brought by other federal authorities.
However, to collect an award, it's not enough for whistleblowers to merely submit tips. Whistleblowers must apply for an award when their information leads to a successful enforcement action. The newly updated Form WB-APP must be filed for an award to be granted. The SEC publishes a list of enforcement actions, which whistleblowers need to monitor to determine if their information resulted in a successful sanction. The SEC list of Notices of Covered Action is updated regularly.
SEC whistleblowers need to keep track of Notices of Covered Action, or else they risk missing out on millions. Ultimately, it is in the SEC whistleblower's best interest to retain an attorney to track SEC notices and those from other federal agencies that might relate to their claim.
See if you are eligible for an award, visit SEC's up-to-date database of Notices of Covered Action.
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