The Dodd-Frank SEC Whistleblower Program, 15 U.S.C. § 78U-6, provides substantial monetary rewards to whistleblowers who voluntarily provide original information to the SEC where such information results in a successful enforcement action with monetary sanctions exceeding $1 million.

Whistleblower Awards made by the SEC

When these requirements are satisfied, the SEC shall pay an award to one or more whistleblowers in an aggregate amount not less than 10 percent or more than 30 percent of what has been collected by the SEC of the monetary sanctions imposed in a given case, under regulations adopted by the Commission. Importantly, these rewards can also include recoveries for any related actions that might be brought by certain other federal or state authorities, including the Department of Justice.

The SEC exercises discretion in determining the level of award to pay a whistleblower. The factors considered by the Commission to either increase or decrease the award level are found at 17 C.F.R. § 240.21 F-6 in the Code of Federal Regulations. These are commonsense considerations, taking into account a whistleblower’s level of quality information, timeliness and cooperation, and conversely, the whistleblower’s potential level of culpability or obstruction in the investigative process.

Hagens Berman represents several whistleblower actions under the CFTC and SEC Whistleblower Programs, including representation of high-profile market expert Haim Bodek, and marshals its significant nationwide resources and expertise in financial fraud to best present whistleblower matters to the SEC and CFTC.