The Securities and Exchange Commission recently released its first annual report on the Dodd-Frank Act’s whistleblower program, revealing that the commission has received more than 3,000 tips during the program’s first year of operation.
“In just its first year, the whistleblower program already has proven to be a valuable tool in helping us ferret out financial fraud,” SEC Chairman Mary Schapiro said, according to The Wall Street Journal. “When insiders provide us with high-quality road maps of fraudulent wrongdoing, it reduces the length of time we spend investigating and saves the agency substantial resources.”
“Corporate disclosures and financials” was among the top complaint by whistleblowers at 18.2 percent, followed by “offering fraud” at 15.5 percent and “manipulation” at 15.2 percent.
The commission received tips from all 50 states, Washington D.C., Puerto Rico and 49 countries.
Established under the Dodd-Frank Act, the whistleblower program, which took effect in August 2011, allows the SEC to reward whistleblowers with between 10 percent and 30 percent of money collected in a case if sanctions exceed $1 million, according to CNN Money.
The SEC made its first and only payout this past August to a whistleblower who helped the commission “stop an ongoing multi-million dollar fraud.” The whistleblower received the maximum award of 30 percent of the amount collected by the SEC in its enforcement actions.
Additionally, the SEC said that 143 enforcement actions and judgments were issued within the past year, all of which qualified for awards, The Wall Street Journal reports.