SEC Whistleblower Program

The SEC whistleblower program is a program that was initiated to be offering awards to entitled whistleblowers who provide original information that has in one way facilitated the successful SEC enforcement actions with total civil penalties which may have exceeded $ 1 million. A whistleblower can receive an award of between 10% and 30% of the monetary sanctions that may have been collected in actions brought by the SEC whistleblower program and also in related effects that may have been delivered by other law-enforcement authority or regulatory.

The SEC Whistleblower program reward provisions were endorsed in the Dodd-Frank Act through a Congress that was held. Its main aim was to be a source of motivation to individuals with inside knowledge. Also, to encourage them to come forward and be a source of help to the government in helping identify and prosecute people who have violated security laws and also recover money for victims of financial fraud. So far, the SEC whistleblower program has awarded more than $ 322 million in their awards to whistleblowers. Their order of announcing awards while still few was to offer valuable guidance on two main factors which are to help recover a prize and to maximize the percentage of the prize.

Over its short period of engagement, the SEC whistleblower program has facilitated the SEC in uncovering important investment fraud patterns and has stopped on-goings fraud. The office of the SEC whistleblower program has been receiving over 22,000 tips since the year 2011. Some of this tips have facilitated the enforcement of actions that have resulted in more than $ 1.5 billion in financial agreements from the offenders. Over the years, the SEC whistleblower program has paid more than $ 322 million in their awards giving ceremonies to whistleblowers.

The SEC whistleblower attorney program has also been offering essential security against retaliation. Whistleblowers often have the option to make revelations secretly through an attorney and the SEC whistleblowers program ensures that it takes steps to safeguard the confidentiality of the whistleblower revelations. In cases whereby a whistleblower undergoes retaliation, the Dodd-Frank Act and the whistleblower protection law known as the Sarbanes-Oxley ensures they provide a remedy. The SEC has also taken to administrative action against companies that tend to infringe the whistleblower safety provision of the Dodd-Frank Act.

For a whistleblower to succeed in a Sarbanes-Oxley retaliation claim, he or she must ensure they show by proof that:- they got engaged in a whistleblowing activity that is protected, the company is aware of their protected activity, they have suffered someone’s action and that their protected activity was the primary causative agent in the unfavorable effect that happened. The causative factor is a simple affliction that can always be met by providing a proof of the protected doings that may have tended to affect the decision taken on the opposing action. Once the whistleblower shows the evidence and makes the appearance, to avoid liability, the company can prove it by precise and substantial evidence that might have taken the same action even in the absence of the protected goings-on.