Whistleblower Tips Hit 3,000 in First Year of Program
The Securities and Exchange Commission (SEC) reports that it received more than 3,000 tips in 2012 in the new whistleblower program that was authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
SEC Chairman Mary L. Schapiro stated that the program is now an important tool for digging out practices that are defrauding the government, reports the South Florida Business Journal.
The most common whistleblower complaints were related to corporate disclosures and financials at 18.2 percent, followed by offering fraud (15.5 percent) and manipulation at (15.2 percent), reports the South Florida Business Journal.
The SEC’s report notes that the program’s first whistleblower helped stop a multi-million dollar fraud and received an award of 30 percent of the amount collected by the government, which is the maximum payout allowed by law.
The SEC can award a whistleblower who gives unique and high-quality information about a possible securities law violation that leads to a successful enforcement action, according to the Dodd-Frank Act. The whistleblower is eligible to receive 10 to 30 percent of the penalties collected if they total more than $1 million.
If you or someone you know has information about practices that are defrauding the government, contact Sokolove Law today for a free and confidential legal consultation.