The groups said the Madoff whistleblower would have been denied an award under the SEC’s reasoning.
The SEC whistleblower rules harbor an “undisclosed procedural trap” that unfairly denied an award to a pro se whistleblower unfamiliar with the process, a coalition of watchdog groups said in an amicus brief. According to amici, a requirement that whistleblowers file a Form TCR before any public disclosure does not appear in SEC rules and discourages reporting of violations (Brief of Government Accountability Project, et al. as Amicus Curiae Supporting Petitioners, Doe v. SEC, No. 25-60572 (5th Cir. Mar. 18, 2026)).
“Denying awards has unfortunately become this SEC’s dangerous pattern, and continuing to do so, as here, based on contrived, hyper-technical grounds, will only discourage others from coming forward with evidence of financial wrongdoing,” said Dominick Freda, legal director at Better Markets.
“That means more investor losses and decreased investor confidence,” he said.
The amicus brief was joined by Whistleblower Aid, Government Accountability Project, The Signals Network, and four individual whistleblowers.
SEC award denial. The SEC denied the whistleblower’s application for award in an order last September. The SEC stated there was “no causal connection” between the whistleblower’s submission of information and the SEC’s opening of an investigation.
According to the SEC, the whistleblower published an article detailing certain violations. At the time, the...
Hyderabad: The hyped-up claims by the then BRS government of providing 100 per cent coverage of drinking water connections to homes under Mission Bhagiratha has turned into a problem for Telangana...