SEC Whistleblower Awards Continue, Including to Employees Who Provide Information After an Investigation Has Begun

As we have previously written, the Securities and Exchange Commission (“SEC”) has not slowed in its efforts to issue substantial awards to whistleblowers under the SEC whistleblower program created pursuant to Dodd-Frank.  As stated in Dodd-Frank, “if the information leads to an enforcement action that results in more than $1 million in monetary damages,” the SEC may issue an award.  Notably, whistleblowers are eligible to receive 10-30% of the monies collected, and the SEC additionally can “pay awards based on monetary sanctions collected by other authorities in actions that are related to a successful… enforcement action, and based on information provided by a… whistleblower.”  To assure the program would pay, Congress funded the program from inception so there would be no issue with financing awards.

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