May 14, 2025
This information is provided for educational purposes only by Kohn, Kohn & Colapinto and does not constitute legal advice. No attorney-client relationship is created by accessing this content. Laws and regulations may change, and this material may not reflect the most current legal developments. If you believe you have a whistleblower claim, consult a qualified attorney to discuss your specific circumstances.
An eligible SEC whistleblower is an individual who voluntarily provides original information to the U.S. Securities and Exchange Commission (SEC) about a possible violation of federal securities laws that has occurred, is ongoing, or is about to occur.
The SEC Whistleblower Program, established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, aims to incentivize individuals to report securities law violations by offering monetary rewards if their information leads to successful enforcement action by the SEC.
Our firm welcomes former SEC acting chair and commissioner Allison Herren Lee
Now Of Counsel at Kohn, Kohn & Colapinto, Allison Herren Lee is ready to serve and protect whistleblowers, and help them seek rewards under the Dodd-Frank Act and SEC Whistleblower Program. If you’re an SEC whistleblower seeking to report a concern, contact our law firm today to speak confidentially with Allison Lee.
Defining Eligibility
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
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.
