SEC Publicizes 2013 Whistleblower Results

On November 15, 2013, the SEC publicized its 2013 Annual Report on the Dodd-Frank Whistleblower Program.  Although the Whistleblower Program is only in its third year, the SEC trumpeted its results as “historic.”  During Fiscal Year 2013, the program paid just over $14,800,000 in awards.  One whistleblower alone received in excess of $14 million for providing information that allowed the SEC to bring an enforcement action in less than six months and recover a significant amount of money for investors.  Since its inception, the Whistleblower Office has granted awards to six whistleblowers, four of whom received awards in FY2013.

The SEC noted that in FY 2013, it received a total of 3,238 tips, a slight increase from the 3,001 tips received in FY 2012.  Among the tips received, 17.2% were related to corporate disclosures and financials, 17.1% were related to offering fraud, and 16.2% were related to market manipulation.  The tips came in from all 50 states but the majority came from California, Texas, Florida and New York.

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