The SEC does not disclose details about whistleblowers’ tips (only the general category of the tips). However, recent SEC enforcement actions shed some light on the potential accounting violations disclosed in the tips, which include:
For examples of these SEC enforcement actions, click here.
In exchange for disclosing financial fraud to the SEC, whistleblowers are eligible for substantial monetary awards. When a whistleblower’s tip (original information about a violation of the federal securities laws) leads to an enforcement action with total monetary sanctions in excess of $1 million, a whistleblower may receive an award of between 10 to 30 percent of the total monetary sanctions collected. In certain circumstances, even auditors and accountants may be eligible for awards under the program.
The SEC Whistleblower Program also protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity. Whistleblowers can even submit a tip anonymously to the SEC if represented by an attorney in connection with their tip.
Since 2012, the SEC Whistleblower Program has issued more than $1.7 billion in awards to whistleblowers.
For more information about the SEC Whistleblower Program, download the eBook: Tips from SEC Whistleblower Attorneys to Maximize an SEC Whistleblower Award and see these articles:
In conjunction with our courageous clients, our SEC whistleblower attorneys have helped the SEC halt multi-million dollar investment schemes, expose violations at large publicly traded companies, and return funds to defrauded investors.
In contrast to many other SEC whistleblower law firms, our multi-disciplinary team of SEC whistleblower lawyers includes a Certified Public Accountant and Certified Fraud Examiner with substantial experience auditing public companies and investigating complex fraud schemes. We understand the many challenges that the SEC faces in investigating our clients’ disclosures and take measures to increase the likelihood that the SEC will be able to effectively pursue the disclosures that our SEC whistleblower lawyers provide on behalf of our clients.Under the SEC Whistleblower Reward Program, whistleblowers can submit tips anonymously to the SEC through an attorney and be eligible for an award for exposing any material violation of the federal securities laws, including:
The SEC has jurisdiction over a wide range of industries and entities – both public and private.
Recently the Association of Certified Fraud Examiners published a profile of SEC whistleblower attorney Matthew Stock’s success working with whistleblowers to fight fraud:
Click here to hear SEC whistleblower attorney Matthew Stock’s tips for SEC whistleblowers.
In an April 3, 2020 speech and March 12, 2020 webinar, the SEC’s Chief Accountant warned of significant accounting challenges as a result of the coronavirus pandemic. In particular, the Chief Accountant highlighted concerns related to the following areas of accounting:
The Chief Accountant also warned that companies may try to use the pandemic to cover up past errors or fraud. Whistleblowers can assist the SEC root out financial statement fraud by reporting to the SEC Office of the Whistleblower.
Prior to submitting a tip, whistleblowers should consult with an experienced whistleblower attorney and review the SEC whistleblower rules to, among other things, understand eligibility rules. As noted, compliance personnel, gatekeepers, and other corporate insiders may be eligible for awards in certain circumstances. If whistleblowers are uncertain about their eligibility, they should consult with an experienced SEC whistleblower attorney. A skillful analysis may be the difference between a multimillion-dollar whistleblower award and no award at all.
Click below to hear SEC whistleblower lawyer Matt Stock’s tips for SEC whistleblowers:
Click here to learn more about anti-retaliation protections for SEC whistleblowers under the Dodd-Frank Act and Sarbanes-Oxley Act.