In its Annual Report on the Dodd-Frank Whistleblower Program (Report), the SEC has revealed that it has received 3,001 tips during its 2012 fiscal year (the first year of this program), and it paid out its first award to a whistleblower in 2012.
Pursuant to Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) the whistleblower bounty program directs the SEC to make monetary awards to individuals who voluntarily provide original information that leads to successful enforcement actions resulting in the imposition of monetary sanctions over $1 million. Whistleblowers can receive awards of between 10% to 30% of the monetary sanctions collected (the percentage of the recovery is left to the SEC’s discretion).
