The United States Securities and Exchange Commission is one of the agencies of the federal government, and they are responsible for the enactment of laws that covers federal security, the rules and regulations of the security industry, managing the country’s stock market, and looking after the electronic stock market operations. The SEC launched their whistleblower program in 2010 to curb the increasing number of wrongdoings against the agency. The Dodd-Frank Wall Street Reform and Consumer Protection Act is the law responsible for the creation of the program, allowing the government to provide incentives to those who will provide tips and reports about any irregularities and fraudulent acts committed by companies against the agency. Those who filed a report could successfully get an SEC Whistleblower award which is 10% to 30% of the money collected from the sanctions against the company. The SEC Whistleblower Program only goes after companies which have fraudulent transactions that could cost them more than $1 million, and since the enactment of the law, there have been 22,000 reports received by the agency. They also collected $1.5 billion worth of monetary sanctions, wherein $300 million were given away to tipsters. Because of the dangers of reporting these fraudulent acts to the government, many whistleblowers were given a chance to report anonymously, and they were also given their security for their protection.
A program that rewards the tipsters have been around for two decades, but it is not widely known, and only a few reports were made. The SEC decided to overhaul their existing program and marketed it to the public with the hopes that it would encourage them to hunt down those who are doing fraudulent acts against the agency. Since the implementation of the SEC Whistleblower Program, more people are submitting themselves to the government, telling them everything that they know about these criminal organizations and corrupt companies that wanted to take advantage of the country’s existing SEC laws to launder or steal more money. The United States have noticed that a lot of reports are coming from the state of California, Florida, New Jersey, New York, and Texas, and they have run after the companies committing such fraud. Foreign countries could also report fraudulent acts committed by American companies on their territories, with Australia, Canada, and the United Kingdom leading the number of reports made to the agency.
People who have been reporting their cases to the SEC can also work with the SEC whistleblower advocate, a team of professionals who helps the whistleblowers successfully post their reports to the agency. The existence of such SEC whistleblower office made it possible for the agency to track down more companies that do not adhere to their rules and regulations, and it also sent a clear message to those who are trying to trick the United States government that they would never succeed with their fraudulent plans. The SEC reported that the number of tips is constantly increasing each year, with more people relying on the incentives to earn a huge amount of money.