Whistleblower advocates praise first 100 whistleblowers rewarded by SEC programme
The Securities and Exchange Commission (SEC) has announced its 100th whistleblower award since the creation of the SEC Whistleblower Program as part of the Dodd Frank Act in 2010.
“The first 100 Dodd-Frank Act whistleblowers proved that whistleblowing works,” says leading whistleblower attorney Stephen M Kohn, partner at the qui tam law firm Kohn, Kohn & Colapinto. “It is now up to Congress to ensure that similar programs are enacted into law, existing programs are enhanced, and ultimately that whistleblowers are fully protected from the corporate backlash that always comes.”
“The original information provided by these 100 Wall Street whistleblowers triggered the government to collect over USD2.5 billion from fraudsters and return over USD750 million to harmed investors. These 100 whistleblowers are the true heroes,” Kohn dds.
The SEC has now issued over USD527 million to whistleblowers since 2010.
Under the Dodd Frank Act, SEC whistleblowers who file award claims with the SEC are protected under law, ensuring that the Commission will not release any information that may reveal their identity.
Last week, the SEC voted on proposed rule changes to the Whistleblower Program, resulting in the Commission backing down from major amendments that would have severely damaged the programme. All of the Commissioners acknowledged the key role whistleblowers play in detecting fraud.
“Today’s award marks a milestone for the whistleblower programme,” says SEC Chairman Jay Clayton. “We remain dedicated to working quickly to get more money into the hands of whistleblowers.”