Section 922 of the Dodd-Frank Act requires the Securities and Exchange Commission to establish a whistleblower program that awards whistleblowers for their information about securities fraud. On July 21, 2010, the SEC Office of the Whistleblower was formed, enforcing the SEC Whistleblower Program.
This program rewards whistleblowers who report violations to the SEC. The types of violations include securities manipulation, pyramid, and Ponzi schemes, insider trading, naked short selling, money laundering, foreign bribery, and other forms of market manipulation.
To be eligible for a reward, whistleblowers must provide original information about a violation of securities law that leads to a successful enforcement action. This action must result in monetary penalties exceeding $1,000,000. SEC whistleblower awards range between 10% and 30% percent when the monetary sanctions collected exceed 1 million.