SEC sees an increase in whistleblower activity

New report shows 8 percent uptick in tips

The Securities and Exchange Commission has released its second annual report on whistleblower activity, revealing statistics about the number of tips it received as part of the program, as laid out in the Dodd-Frank Act. The key takeaway from the report is that whistleblower tips rose in fiscal year 2013, going from 3,001 tips to 3,238 tips, an 8 percent increase.

The increase in tips could, in part, be linked to the increase in awards the SEC has given out to whistleblowers. In September of 2013, the Commission gave a record $14 million award to a whistleblower whose tip led to sanctions that totaled at least $46.7 million.

As part of the report, the SEC also revealed how many tips were received in certain categories. Corporate disclosures and financials led the way with 557 tips in FY 2013, with fraud close behind at 553 tips. Foreign Corrupt Practices Act tips rose from 115 in FY 2012 to close to 150 in the past year. Nearly a quarter of the tips (784) were uncategorized, and 84 were left blank.

Tips came from all 50 states, with California, New York and Florida leading the way. There were also tips from 55 different foreign countries.

As part of the report, whistleblower office chief Sean McKessy outlined policy points that the SEC will focus on in the future, including protecting the identities of whistleblowers and insulating them from retaliation.

 

For more news about the SEC, check out the following stories:

Demystifying the U.S. Foreign Corrupt Practices Act (Part I)

Dodd-Frank derivatives regulations face delays

Recent DOJ and FTC activity focuses on corporate antitrust and trade regulation compliance programs

 

Managing Editor

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Rich Steeves

Richard P. Steeves is Managing Editor of InsideCounsel magazine, where he covers the intellectual property and compliance arenas. Rich earned a B.A. in English Literature...

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