SEC Whistleblowers Lead to $2 Billion in Enforcement Actions

The Securities and Exchange Commission (SEC) has released the annual report from its Office of Enforcement that confirms that the whistleblower reward program is helping protect investors from fraud.

The report says the SEC whistleblower law:

  • Is very successful and that whistleblowers have made meaningful contributions to significant cases;
  • Has resulted in high-quality SEC enforcement actions and led to more than $2 billion in financial remedies;
  • The SEC has paid whistleblowers about $387 million in rewards.

“Without whistleblower-insiders, the vast majority of frauds would go undetected, and investors would lose billions of dollars to those given by criminal greed,” says Stephen Kohn, SEC whistleblower attorney, in a statement. Kohn has represented corporate whistleblowers for over 35 years and worked with Congress in drafting the Dodd-Frank Act whistleblower protections.

“The SEC has confirmed that a well-placed whistleblower is the ‘goose that lays the golden egg.’ The SEC program has been highly successful, and we hope that the new regulations under consideration by the Commission will build on this substantial progress,” Kohn says.