10 December 2024. The SEC Whistleblower Program, established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, continues to make a substantial impact in combating securities fraud and protecting investors. On November 15, 2024, the Securities and Exchange Commission (SEC) released its Annual Report to Congress, showcasing the Program’s achievements during Fiscal Year 2024. The SEC Whistleblower Program remains committed to incentivizing whistleblowers to report securities law violations while ensuring robust protections against retaliation.

47 Whistleblowers Awarded Over $255 Million

The SEC awarded more than $255 million to 47 whistleblowers in FY 2024, making it the third-highest payout year since the Program’s inception. Among these awards:

• Approximately $98 million was split between two whistleblowers—marking the fifth-largest individual award in the Program’s history.
• Since its launch in 2011, the SEC has distributed over $2.2 billion in awards to a total of 444 whistleblowers.

Record-Breaking Enforcement Actions

To uphold its oversight mandate, the SEC took proactive measures to protect whistleblowers in FY 2024:

• The Commission pursued 11 enforcement actions against entities or individuals attempting to prevent whistleblowers from contacting the SEC. This represents more than double the enforcement actions taken in FY 2023 and sets a record for the Program, with the filing of 32 enforcement actions total, since its inception.
• One standout case resulted in an $18 million penalty, the highest penalty ever imposed in cases involving “restrictive agreements” designed to silence whistleblowers.

Strong Award Granting Activity

The SEC approved awards in 28 Covered Actions during FY 2024. Covered Actions involve enforcement cases where whistleblower tips directly led to successful outcomes. The transparency and fairness of this process ensure whistleblowers are recognized for their critical contributions to tackling securities fraud.

Why the SEC Whistleblower Program Matters

The SEC Whistleblower Program plays a vital role in maintaining market integrity by encouraging individuals to report financial misconduct. By offering monetary rewards and legal protections, the Program seeks to address issues such as insider trading, accounting fraud, and reporting misstatements.

Benefits for Whistleblowers

Monetary Incentives: Whistleblowers may be eligible for awards ranging from 10% to 30% of the monetary penalties collected in cases where fines exceed $1 million.

Legal Protections: Whistleblowers are shielded from retaliation under provisions in the Dodd-Frank Act, and the SEC actively enforces these protections.

Anonymity: Whistleblowers submitting tips through attorneys can remain anonymous throughout the process.

Looking Ahead for Whistleblowers

The SEC’s FY 2024 report highlights the growing importance of whistleblowers in uncovering securities law violations. With over $2.2 billion awarded since the Program’s inception, the SEC Whistleblower Program continues to prove its effectiveness in fostering accountability and making financial markets safer for investors.

If you suspect securities fraud or other violations of federal securities laws, now is the time to come forward. By participating in the SEC Whistleblower Program, you can contribute to enforcement actions that uphold the law, protect investors, and create transparency in the financial markets.