SEC gets over 3,000 tips in first year of whistleblower program

  @jtotoole November 15, 2012: 12:59 PM ET
sec building

The U.S. Securities and Exchange Commission building in Washington.

NEW YORK (CNNMoney)

The Securities and Exchange Commission said Thursday that it had received over 3,000 tips in the first year of its whistleblower program.

The program was established by the 2010 Dodd-Frank financial reform law and took effect in August of last year. It allows the SEC to grant whistleblowers awards of between 10% and 30% of the money collected in a case when the information provided leads to more than $1 million in sanctions.

"In just its first year, the whistleblower program already has proven to be a valuable tool in helping us ferret out financial fraud," SEC Chairman Mary Schapiro said in a statement. "When insiders provide us with high-quality road maps of fraudulent wrongdoing, it reduces the length of time we spend investigating and saves the agency substantial resources."

The agency received tips from all 50 states and 49 foreign countries over the course of the year, receiving 3,001 in total. It has made just one payout so far, however, granting its first award this past August.

N.Y. county alleges Libor fraud

The agency did not identify the whistleblower or the case in question, but said the person would receive $50,000, with more rewards possible pending further developments in the case.

Related: SEC issues first whistleblower award

The most common whistleblower complaints so far relate to corporate disclosures and financials, comprising 18% of tips, with 15.5% alleging offering fraud, the SEC said.

While the SEC program is still in its early stages, whistleblowers have long been able to earn rewards by filing lawsuits showing that the government is being defrauded. The IRS also has its own whistleblower program for individuals who expose tax evasion. To top of page



Join the Conversation
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.36%4.24%
15 yr fixed3.39%3.26%
5/1 ARM3.36%3.27%
30 yr refi4.34%4.22%
15 yr refi3.38%3.24%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com
CNNMoney Sponsors
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.