Last week the SEC Whistleblower Office released its 2022 Annual Report, with office chief Creola Kelly saying that the SEC Whistleblower Program is “effectively incentivizing whistleblowers to make the often difficult decision to come forward with information about potential securities-law violations.” The data confirms that whistleblowers are making a big difference in protecting the markets and investing public. According the to the SEC, since the implementation of Dodd-Frank, enforcement actions involving whistleblowers have resulted in orders for more than $6.3 billion in total monetary sanctions, including more than $4.0 billion in disgorgement orders.
During the fiscal year ending in September 2022, the SEC received the largest number of submissions to the program in its history and kept up 2021’s pace by issuing over 100 whistleblower awards, totaling over $229 million. Since the program began, the SEC has awarded more than $1.3 billion to 328 individual whistleblowers.
The SEC notes in its report that more than 90% of the awards in FY2022 were made under the presumption setting awards at the maximum 30% of the monetary sanctions collected where the award will be less than $5 million. This presumably means that more than 90% of the awards issued were for less than $5 million. While the average award size may be lower, the increased number of awards in FY2022 puts the $229 million in total awards in second place over the history of the program.
The math confirms the...
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