SEC Announces First Whistleblower Program Award
On August 21, 2012, the Securities and Exchange Commission (“SEC”) announced its first “whistleblower” award under the Dodd-Frank Act. While the facts relating to the whistleblower and the related enforcement action were not identified, the particulars of the award were detailed in the SEC’s press release. The award grants the whistleblower $50,000 immediately— a thirty percent stake in the total monetary sanctions the SEC has collected in the action and the maximum percentage allowed by law. The whistleblower’s recovery will increase if the SEC collects additional sanctions. The award comes just over a year since the SEC issued the final whistleblower rules and signals the SEC’s intent to encourage whistleblowers to come forward both by issuing the maximum allowable award and by maintaining the whistleblower’s confidentiality.