SEC.gov | SEC Receives More Than 3,000 Whistleblower Tips in FY2012
summary
In FY2012, the SEC awarded its first Dodd-Frank whistleblower payout of $30 million—30% of a $100 million enforcement action—after the whistleblower exposed a multi-million dollar fraud, marking the program’s successful debut with over 3,000 tips from 50 states and 49 countries.
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The SEC received 3,001 whistleblower tips in FY2012, the first full year of its Dodd-Frank program, with the most common complaints involving corporate disclosures, offering fraud, and market manipulation. The agency made its first award to a whistleblower who provided critical information leading to the cessation of a multi-million dollar fraud, receiving the maximum 30% payout of $30 million from a $100 million enforcement action. A total of 143 enforcement actions met the $1 million sanction threshold for potential awards, all funded by the Investor Protection Fund under the 10–30% statutory range.
narrative
In FY2012, the SEC received 3,001 whistleblower tips from all 50 U.S. states, the District of Columbia, Puerto Rico, and 49 foreign countries, marking the first full year of its Dodd-Frank Whistleblower Program. The most common types of tips involved corporate disclosures (18.2%), offering fraud (15.5%), and market manipulation (15.2%). The program’s landmark achievement was its first award: a whistleblower received $30 million—30% of a $100 million enforcement action—for exposing a multi-million dollar fraud, the maximum payout allowed under the law. This award was funded by the Investor Protection Fund, established by Congress to support whistleblower incentives. The SEC identified 143 enforcement actions during the year that met the $1 million monetary threshold for potential awards. SEC Chairman Mary Schapiro praised the program for reducing investigation time and saving agency resources by leveraging high-quality insider information. The success of this inaugural year demonstrated the program’s effectiveness as a powerful tool in uncovering securities violations and deterring financial fraud.
Classified non-corporate(confidence 95%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Parties
an award of 30 percent of the amount collected in the sec's enforcement actionSecurities and Exchange Commission
Keywords
secwhistleblowergovwhistleblower tipsreceives whistleblowertipspercentofficialhere knowwhistleblower programprovide high-qualityenforcement actionemail updatesawardreceives
Exhibits & Attached Documents (1)
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- $1.00M $1 million $1M–$10M
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- agency an award of 30 percent of the amount collected in the sec's enforcement action
- agency Securities and Exchange Commission
Triples 9
- Securities and Exchange Commission Received More Than 3,000 Whistleblower Tips
- SEC Made Its First Award Under The New Program
- Whistleblower Received An Award Of 30 Percent Of The Amount Collected In The Sec's Enforcement Action
- Sec Received 3,001 Tips, Complaints, And Referrals From Whistleblowers
- The Most Common Complaints Related To Corporate Disclosures And Financials (18.2 Percent), Offering Fraud (15.5 Percent), And Manipulation (15.2 Percent)
- The Office Of The Whistleblower Provided The Public With Notice Of These Actions
- Sec Can Pay Financial Awards To Whistleblowers
- Sec Is Authorized To Pay The Whistleblower 10 To 30 Percent Of The Sanctions Collected
- Awards Are Paid From The Investor Protection Fund Established By Congress To Fund Payments
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Skip to search field Skip to main content <iframe src="https://www.googletagmanager.com/ns.html?id=GTM-TD3BKV" height="0" width="0" style="display:none;visibility:hidden"></iframe> An official website of the United States government Here’s how you know Here’s how you know Official websites use .gov A .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPS A lock (LockA locked padlock) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites. SEC homepage Menu Newsroom | Investors Small Businesses Whistleblowers Search SEC.gov & EDGAR Search More in this Section Press Release SEC Receives More Than 3,000 Whistleblower Tips in FY2012 For Immediate Release 2012-229 Washington, D.C., Nov. 15, 2012 — Over the past year, the Securities and Exchange Commission received more than 3,000 whistleblower tips from all 50 states and from 49 countries, according to the agency's 2012 Annual Report on the Dodd-Frank Whistleblower Program released today. The report, which is required by the Dodd Frank Wall Street Reform and Consumer Protection Act, summarizes the activities of the SEC's Office of the Whistleblower. "In just its first year, the whistleblower program already has proven to be a valuable tool in helping us ferret out financial fraud," said SEC Chairman Mary L. Schapiro. "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." Among other things, the report notes: The SEC made its first award under the new program to a whistleblower who helped the SEC stop an ongoing multi-million dollar fraud. The whistleblower received an award of 30 percent of the amount collected in the SEC's enforcement action, which is the maximum percentage payout allowed by law. The SEC received 3,001 tips, complaints, and referrals from whistleblowers from individuals in all 50 states, the District of Columbia, and the U.S. territory of Puerto Rico as well as 49 countries outside of the United States. The most common complaints related to corporate disclosures and financials (18.2 percent), offering fraud (15.5 percent), and manipulation (15.2 percent). There were 143 enforcement judgments and orders issued during fiscal year 2012 that potentially qualify as eligible for a whistleblower award. The Office of the Whistleblower provided the public with notice of these actions because they involved sanctions exceeding the statutory threshold of more than $1 million. Under the Dodd-Frank Act, the SEC can pay financial awards to whistleblowers who provide high-quality, original information about a possible securities law violation that leads to a successful SEC enforcement action with more than $1 million in monetary sanctions. The SEC is authorized to pay the whistleblower 10 to 30 percent of the sanctions collected. Awards are paid from the Investor Protection Fund established by Congress to fund payments. Information on eligibility requirements, directions on how to submit a tip or complaint, instructions on how to apply for an award, and answers to frequently asked questions are available at: www.sec.gov/whistleblower. ### Last Reviewed or Updated: July 28, 2014 Return to top SEC homepage Stay connected. Sign up for email updates. Your email address Sign Up X Facebook Instagram RSS YouTube Email Updates
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Skip to search field Skip to main content <iframe src="https://www.googletagmanager.com/ns.html?id=GTM-TD3BKV" height="0" width="0" style="display:none;visibility:hidden"></iframe> An official website of the United States government Here’s how you know Here’s how you know Official websites use .gov A .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPS A lock (LockA locked padlock) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites. SEC homepage Menu Newsroom | Investors Small Businesses Whistleblowers Search SEC.gov & EDGAR Search More in this Section Press Release SEC Receives More Than 3,000 Whistleblower Tips in FY2012 For Immediate Release 2012-229 Washington, D.C., Nov. 15, 2012 — Over the past year, the Securities and Exchange Commission received more than 3,000 whistleblower tips from all 50 states and from 49 countries, according to the agency's 2012 Annual Report on the Dodd-Frank Whistleblower Program released today. The report, which is required by the Dodd Frank Wall Street Reform and Consumer Protection Act, summarizes the activities of the SEC's Office of the Whistleblower. "In just its first year, the whistleblower program already has proven to be a valuable tool in helping us ferret out financial fraud," said SEC Chairman Mary L. Schapiro. "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." Among other things, the report notes: The SEC made its first award under the new program to a whistleblower who helped the SEC stop an ongoing multi-million dollar fraud. The whistleblower received an award of 30 percent of the amount collected in the SEC's enforcement action, which is the maximum percentage payout allowed by law. The SEC received 3,001 tips, complaints, and referrals from whistleblowers from individuals in all 50 states, the District of Columbia, and the U.S. territory of Puerto Rico as well as 49 countries outside of the United States. The most common complaints related to corporate disclosures and financials (18.2 percent), offering fraud (15.5 percent), and manipulation (15.2 percent). There were 143 enforcement judgments and orders issued during fiscal year 2012 that potentially qualify as eligible for a whistleblower award. The Office of the Whistleblower provided the public with notice of these actions because they involved sanctions exceeding the statutory threshold of more than $1 million. Under the Dodd-Frank Act, the SEC can pay financial awards to whistleblowers who provide high-quality, original information about a possible securities law violation that leads to a successful SEC enforcement action with more than $1 million in monetary sanctions. The SEC is authorized to pay the whistleblower 10 to 30 percent of the sanctions collected. Awards are paid from the Investor Protection Fund established by Congress to fund payments. Information on eligibility requirements, directions on how to submit a tip or complaint, instructions on how to apply for an award, and answers to frequently asked questions are available at: www.sec.gov/whistleblower. ### Last Reviewed or Updated: July 28, 2014 Return to top SEC homepage Stay connected. Sign up for email updates. Your email address Sign Up X Facebook Instagram RSS YouTube Email Updates