SEC Whistleblower Program – Early Results Point to Huge Potential Impact

Even though it only became effective in August, the Securities and Exchange Commission’s (SEC) new whistleblower program is already having a powerful impact, according to the Annual Report on the Whistleblower Program released by the SEC this month. According to the report, the SEC received 334 whistleblower tips in the seven weeks since the program became effective on August 12, 2011, to September 30, 2011, the end of the fiscal year. Tips came from individuals in 37 states, as well as from several foreign countries, including China and the United Kingdom, demonstrating the global reach of this innovative new program. It is too early to identify and specific trends or provide amounts of monetary awards paid to whistleblowers. But considering the significant monetary awards and anti-retaliation protections offered, and based on the early numbers, it is clear that the whistleblower program will be a powerful new tool in investigating and prosecuting violations of the securities laws.