One repeat whistleblower who sent the SEC tips about several firms later sanctioned by the regulator tells Bloomberg she stopped because she never heard back from the commission.
The Securities and Exchange Commission’s whistleblower program has resulted in billions of dollars paid to victims of financial fraud and more than one billion to the tipsters helping uncover that fraud, but some whistleblowers say the program needs changing, according to news reports.
Earlier this month, the SEC said that the whistleblower program — established in 2010 as part of the Dodd-Frank financial-reform package — has resulted in a total of more than $1.3 billion paid out in 328 awards, or roughly 25% of the $5.6 billion recouped for victims, according to Bloomberg.
But the awards stem from a tiny proportion of the tips sent to the SEC.
In the commission’s fiscal year 2022, which ended September 30, the SEC received more than 12,300 whistleblower tips, according to the SEC. But only 70 of the covered actions resulted in awards.
Of the 60,000 tips received since 2010, fewer than 300 led to awards, according to Bloomberg.
“I wish we had more resources,” said SEC chair Gary Gensler, according to the news service. “It’s been an important piece of sourcing data and information” that can help the agency become, “within our limited resources, a better cop on the beat.”
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