On November 15, the U.S. Securities and Exchange Commission (SEC) announced its enforcement results for the 2022 Fiscal Year (FY 2022). Over the course of the fiscal year, the agency recovered a record $6.9 billion in penalties and disgorgement. Furthermore, the SEC Whistleblower Program received a record high number of whistleblower tips – more than 12,300.

“The SEC’s program is a model of success,” said leading whistleblower attorney Stephen M. Kohn of Kohn, Kohn & Colapinto. “Whistleblowers have recovered billions for the taxpayers, and harmed investors have been compensated over $1.3 billion.”

“The award program has successfully protected whistleblowers and incentivized key informants to risk their jobs, careers and even their safety to step forward and serve the public interest,” Kohn continued. “The Commission and its staff deserve the public’s thanks for making this program work.”

In their announcement, the SEC refers to the whistleblower program as “an integral part of the Enforcement Program.” In addition to the record number of whistleblower tips received, the SEC reports that in FY 2022 it awarded approximately $229 million to whistleblowers in 103 awards, the second highest dollar amount and number of awards issued by the SEC in a fiscal year. The agency set records in FY 2021 when it awarded approximately $564 million to 108 individuals.

The SEC enforcement results also detail enforcement actions taken against companies and individuals who violated the Dodd-Frank Act’s anti-retaliation provisions. For example, in June, the SEC charged the Brink’s Company over language in confidentiality and nondisclosure agreements which restricted whistleblowing

Through the SEC Whistleblower Program, qualified whistleblowers, individuals who voluntarily provide original information about securities violations to the SEC, are entitled to monetary awards of 10-30% of the funds collected by the government in the enforcement action connected to their disclosure.

In August, SEC Chair Gary Gensler praised the whistleblower program, noting that it has “greatly aided the Commission’s work to protect investors” and explaining that “the SEC has used whistleblower information to obtain sanctions of over $5 billion from securities law violators, return over $1.3 billion to harmed investors, and award over $1.3 billion to whistleblowers for their service.”

Geoff Schweller also contributed to this article.