by Philip G. Berger and Heemin Lee
From left to right: Philip G. Berger and Heemin Lee
In 2011, the U.S. Securities and Exchange Commission (SEC) implemented the Dodd-Frank whistleblower program (Section 922 of Dodd-Frank added new Section 21F, entitled “Securities Whistleblower Incentives and Protection” to the Securities Exchange Act of 1934). It provides financial rewards to whistleblowers who provide high-quality tips on securities law violations that lead to successful SEC and other agency enforcement actions. Anyone with information concerning a potential securities law violation can submit tips to the SEC. Whistleblowers are eligible for monetary rewards of 10% to 30% of the cash collection from successful enforcement actions with monetary sanctions exceeding $1 million. Since the inception of the program, the SEC has awarded more than $1.3 billion in 328 awards to individuals.[1]