Page 2 - Sec Whistleblower Program News Today

This week Transparency International released its 2022 Corruption Perceptions Index CPI, an indicator of public sector corruption that scores 180 countries based on perceptions of public sector corruption.

Due to declines in public offerings, mergers, trading activity, Wall Street banks are restructuring and reducing headcount. Goldman Sachs laid off approximately 3,200 employees, and Morgan Stanley, Barclays, and other financial institutions have announced job cuts.

On January 6, 2023, the Securities and Exchange Commission, SEC issued a $5 million whistleblower award to an individual who voluntarily provided original information that contributed to the success of an enforcement action. It is the first award granted by the agency in 2023.

Following the SEC’s failure to detect and stop Madoff’s fraud, Congress included in the Dodd Frank Act an SEC Whistleblower Program, which provides awards to whistleblowers that voluntarily provide original information leading to successful enforcement actions up to $1 million.

President Biden signed the bipartisan Speak Out Act into law, which takes effect immediately. The new law limits the enforceability of pre-dispute non-disparagement and non-disclosure clauses relating to sexual assault and sexual harassment claims.

U.S. Securities and Exchange Commission Whistleblower Office Annual Report to Congress for 2022 Fiscal Year details record year for the SEC Whistleblower Program, which received 12,300 whistleblower tips and issued 103 whistleblower awards totaling $229 million.

SEC announced its enforcement results for the 2022 Fiscal Year. Over the course of the fiscal year, the agency recovered a record $6.9 billion in penalties and disgorgement. The SEC Whistleblower Program received a record high number of whistleblower tips more than 12,300.

U.S. Securities and Exchange Commission awarded $3.2 million to four whistleblowers who analyzed complex accounting data in public filings and shared their expertise with SEC enforcement staff. On the same day, the SEC also issued five separate whistleblower award denials.

Securities and Exchange Commission SEC awarded a $10 million whistleblower award, The SEC Whistleblower Program offers monetary awards and anti-retaliation protections to individuals who voluntarily provide original information about potential securities law violations

Through the SEC Whistleblower Program, qualified whistleblowers are entitled to monetary awards of 10-30% of the funds collected by the government in the relevant enforcement action. The SEC has awarded over $1.3 billion to over 280 whistleblowers.