First payout of SEC whistleblower program also provides volume of complaints received
The SEC announced its first payout from its new whistleblower program under the Dodd-Frank Act to an unidentified person who helped stop a multi-million dollar financial fraud. The reward was $50,000, representing 30% of the amount collected in the SEC enforcement action. 30% is the maximum percentage payout allowed by the 2010 Dodd-Frank Act that authorized the whistleblower program.
In a prepared statement, the SEC said “since the program was established in August 2011, about eight tips a day are flowing into the SEC.”
This article describes the SEC’s whistleblower program.
David Nolte
I am a founding principal of Fulcrum Inquiry, an accounting and economic consulting firm that performs damage analysis for commercial litigation, forensic accountings, financial investigations, and business valuations. I am a Certified Public Accountant (CPA) and an Accredited Senior Appraiser (ASA), as well as having other professional credentials. I regularly serve as an expert witness involving damages measurement. My litigation-oriented resume is on Fulcrum's website.
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The SEC announced its first payout from its new whistleblower program under the Dodd-Frank Act to an unidentified person who helped stop a multi-million dollar financial fraud. The reward was $50,000, representing 30% of the amount collected in the SEC enforcement action. 30% is the maximum percentage payout allowed by the 2010 Dodd-Frank Act that authorized the whistleblower program.