Who is an Eligible SEC Whistleblower?

To be considered an eligible whistleblower, an individual must meet certain criteria:

• Voluntarily provide the information: The individual must submit the information to the SEC without being requested or compelled by the SEC or another authority.
• Original information: The information provided must be based on the individual’s independent knowledge or analysis and not already known to the SEC or derived from publicly available sources.
• Leads to successful enforcement action: The information must be significant and contribute to a successful SEC enforcement action resulting in monetary sanctions of over $1,000,000.
• Compliance with the procedures: The individual must follow the SEC’s established procedures for submitting a tip, complaint, or referral. This typically involves using the SEC’s online portal or submitting the required forms through mail or fax.

Some individuals are not eligible to be whistleblowers under the SEC program, including:

• Members or employees of the SEC or other law enforcement organizations.
• Individuals who obtain the information through audits or communications protected by attorney-client privilege.
• Individuals who are convicted of a criminal violation related to the SEC action for which they provided information.

Since its inception in 2012, the SEC has distributed nearly $1.2 billion to a total of 249 people. The source of these payments is a dedicated fund for investor protection, created and supervised by Congress. This fund solely depends on the financial penalties received from those who have breached securities laws, meaning the SEC has not deducted any amount from victims of investment fraud to compensate whistleblowers..

SEC Whistleblower Program Annual Reports to Congress

• 2022 Annual Report
• 2021 Annual Report
• 2020 Annual Report
• 2019 Annual Report

If you’ve witnessed a securities violation, you have the power to report it and make a real difference. By coming forward, you not only aid in upholding the integrity of our financial markets, but also become eligible for significant rewards and protection from retaliation under the U.S. securities law.

Kohn, Kohn & Colapinto stands ready to support and guide you throughout this process. We are dedicated to ensuring your rights are safeguarded and that you’re compensated for the risks you take. Stand up for what’s right, contact us today.