If you discover your employer violated Securities and Exchange Commission law, you may file a whistleblower claim. As described in an August 2022 statement on the SEC’s website regarding recent updates, the 2010 Dodd-Frank Act provided the commission with authorization to direct a whistleblower program.
Over the years, the SEC awarded more than $1 billion to whistleblowers and recovered a similar amount for harmed investors. The Securities and Exchange Commission also recently approved amendments to update and improve the manner in which whistleblowers receive compensation for their successful claims.
What types of awards have previous SEC whistleblowers received?
As announced in a 2021 SEC press release, the commission awarded $32 million to a whistleblower whose information led to successful enforcement. Also known as qui tam claims, the SEC may award filers with up to 30% of the penalty funds collected. The commission noted that its qui tam awards have gone to more than 200 recipients.
The SEC notes that award payments do not reflect any funds withheld or supplied by the investors harmed by violators. The payments come from a fund created by the U.S. Congress to hold the monetary penalties levied against parties found in violation of SEC law.
Will the SEC release my name to the public if I file a whistleblower claim?
As the SEC noted in a July 2022 press release announcing a recent award of over $17 million, your identity will remain confidential if you file a claim. The SEC will not make public any details that might reveal the identity of a whistleblower.
Despite the confidentiality, you may find that reporting your employer could still prove stressful. Before you proceed with a whistleblower claim, you may wish to give your decision careful consideration.