Difference between revisions of "SEC Whistleblower Program"

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Under the SEC Whistleblower Reward Program, '''whistleblowers can [https://riskandcompliancemagazine.com/tips-for-whistleblowers-to-qualify-for-an-sec-whistleblower-award submit tips anonymously'''] to the SEC through an attorney and be eligible for an award for exposing any material violation of the federal securities laws.<sup>1</sup></span>
Under the SEC Whistleblower Reward Program, '''whistleblowers can [https://riskandcompliancemagazine.com/tips-for-whistleblowers-to-qualify-for-an-sec-whistleblower-award submit tips anonymously'''] to the SEC through an attorney and be eligible for an award for exposing any material violation of the federal securities laws.<sup>1</sup></span>


The SEC Whistleblower Program continued its remarkable run of success in FY 2020. According to the SEC Whistleblower Office’s [https://www.sec.gov/files/2020%20Annual%20Report_0.pdf 2020 Annual Report to Congress], the office received more than 6,900 tips in the fiscal year. This is the highest number of tips the office has received in one year. '''Most whistleblower tips related to corporate disclosures and financials (25%), offering fraud (16%) and market manipulation (14%).''' Other notable areas of tips included insider trading, trading and pricing schemes, foreign bribery and other FCPA violations, unregistered securities offerings and fraud in connection with initial coin offerings (ICOs) and cryptocurrencies. Since 2011, the SEC Whistleblower Office has received more than 40,200 tips that have enabled the SEC to recover more than $3.5 billion in monetary sanctions from wrongdoers.
The SEC Whistleblower Program continued its remarkable run of success in FY 2020. According to the SEC Whistleblower Office’s [https://www.sec.gov/files/2020%20Annual%20Report_0.pdf 2020 Annual Report to Congress], the office received more than 6,900 tips in the fiscal year.<sup>2</sup></span> This is the highest number of tips the office has received in one year. '''Most whistleblower tips related to corporate disclosures and financials (25%), offering fraud (16%) and market manipulation (14%).''' Other notable areas of tips included insider trading, trading and pricing schemes, foreign bribery and other FCPA violations, unregistered securities offerings and fraud in connection with initial coin offerings (ICOs) and cryptocurrencies. Since 2011, the SEC Whistleblower Office has received more than 40,200 tips that have enabled the SEC to recover more than $3.5 billion in monetary sanctions from wrongdoers.


Consistent with prior years, the states that yielded the highest number of tips in FY 2020 were California, New York, Florida, Texas, and Pennsylvania. Other states that reported a high number of tips were Arizona, Georgia, Massachusetts, Michigan, North Carolina, Ohio, New Jersey, Virginia and Washington. The SEC Whistleblower Office also received tips from 78 foreign countries in FY 2020. The highest number of tips were from whistleblowers in Canada, the United Kingdom and the People’s Republic of China.
Consistent with prior years, the states that yielded the highest number of tips in FY 2020 were California, New York, Florida, Texas, and Pennsylvania. Other states that reported a high number of tips were Arizona, Georgia, Massachusetts, Michigan, North Carolina, Ohio, New Jersey, Virginia and Washington. The SEC Whistleblower Office also received tips from 78 foreign countries in FY 2020. The highest number of tips were from whistleblowers in Canada, the United Kingdom and the People’s Republic of China.


'''Whistleblowers need not be U.S. citizens to be eligible for SEC whistleblower awards.''' According to the [https://www.transparency.org/en/news/corruption-perceptions-index-2017# 2017 Corruption Perceptions Index], a majority of countries are making little or no progress in ending corruption. This finding is consistent with [https://www.pwc.com/gx/en/services/forensics/economic-crime-survey.html PwC’s 2018 fraud survey], which reported the highest fraud levels in organizations in the past 20 years, and the [https://www.pwc.com/gx/en/services/forensics/economic-crime-survey.html ACFE’s 2021 fraud survey], which reported that 51% of organizations have uncovered more fraud since the pandemic and 71% of anti-fraud professionals expect the level of fraud to increase over the next year. As the SEC continues to promote worldwide public awareness of the SEC Whistleblower Program, we expect to see an increase in whistleblower tips and awards in the coming years.
'''Whistleblowers need not be U.S. citizens to be eligible for SEC whistleblower awards.''' According to the [https://www.transparency.org/en/news/corruption-perceptions-index-2017# 2017 Corruption Perceptions Index], a majority of countries are making little or no progress in ending corruption.<sup>3</sup></span> This finding is consistent with [https://www.pwc.com/gx/en/services/forensics/economic-crime-survey.html PwC’s 2018 fraud survey], which reported the highest fraud levels in organizations in the past 20 years, and the [https://www.pwc.com/gx/en/services/forensics/economic-crime-survey.html ACFE’s 2021 fraud survey], which reported that 51% of organizations have uncovered more fraud since the pandemic and 71% of anti-fraud professionals expect the level of fraud to increase over the next year.<sup>4</sup></span><sup>5</sup></span> As the SEC continues to promote worldwide public awareness of the SEC Whistleblower Program, we expect to see an increase in whistleblower tips and awards in the coming years.


='''[https://www.goingconcern.com/6-reasons-sec-whistleblower-program-successful/ SEC Whistleblower Program A Success]'''=
='''[https://www.goingconcern.com/6-reasons-sec-whistleblower-program-successful/ SEC Whistleblower Program A Success]'''=