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Difference between revisions of "SEC Whistleblower Program"
→Largest SEC Whistleblower Awards
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Under the SEC whistleblower-reward program, the SEC is required to issue awards to eligible whistleblowers who provide original information that leads to successful SEC enforcement actions with total monetary sanctions exceeding $1 million. A whistleblower may receive an award of between 10% and 30% of the total monetary sanctions collected. | Under the SEC whistleblower-reward program, the SEC is required to issue awards to eligible whistleblowers who provide original information that leads to successful SEC enforcement actions with total monetary sanctions exceeding $1 million. A whistleblower may receive an award of between 10% and 30% of the total monetary sanctions collected. | ||
== International Schemes and SEC Enforcement Actions == | |||
The SEC’s reach against fraudsters extends internationally. The antifraud provisions of the federal securities laws apply extraterritorially: | |||
#When the wrongful conduct '''occurred''' in the United States; or | |||
#When the conduct outside the United States had a '''substantial effect''' in the United States or upon United States citizens. | |||
This is known as the “conduct-and-effects” test. Courts have applied this test for over 40 years notwithstanding the fact that the federal securities acts of 1933 and 1934 did not address the extraterritorial reach of the antifraud provisions of those statutes. On June 24, 2010, the Supreme Court of the United States held in Morrison v. Nat’l Australia Bank Ltd. that the lower courts were wrong to apply the conduct-and-effects test. Then, less than a month after the Morrison decision, Congress enacted the Dodd-Frank Act, which amended the jurisdictional provisions of the federal securities acts to clearly indicate that the anti-fraud provisions apply extraterritorially when the statutory conduct-and-effects test is met. | |||