Skip to content
DWT logo
People Services Insights
About Offices Careers
Search
People
Services
Insights
About
Offices
Careers
Search
Publications
Securities & Derivative Litigation

SEC Awards First Dodd-Frank Whistleblower Payment

By Jean M. Flannery
October 2012
Share
Print this page

In August, the SEC made its first payout to a whistleblower under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The sum was small—$50,000, or 30 percent of the amount collected so far. 30 percent is the maximum allowable under the whistleblower program, and 10 percent is the minimum. Future awards could far exceed $50,000; Dodd-Frank entitles whistleblowers to between 10 and 30 percent of collected sanctions for securities laws violations over $1 million.

According to a press release by the SEC, the whistleblower turned over documents that helped prevent a multi-million dollar fraud. The release is silent on the whistleblower’s identity or nature of the claim. The release does say, however, that the SEC has collected about $150,000 of the ordered $1 million in sanctions. The court may issue judgments against other defendants in the case that would increase the whistleblower payment. 

The SEC set up the whistleblower program under Dodd-Frank about a year before it made the first payout. Since then, according to the chief of the SEC’s Whistleblower Office, “about eight tips a day are flowing into the SEC.”

Full October 2012 Quarterly Securities Enforcement Briefing

Related Articles

05.22.25
Insights
White Collar, Investigations & Government Controversies
DOJ Criminal Division Reveals New White-Collar Crime Enforcement Priorities and Corporate Enforcement Policies Read More
02.25.25
Insights
Healthcare
In Key Ruling, 1st Circuit Adopts "But-For" Causation Standard for FCA Claims Arising From Unlawful Kickbacks Read More
11.01.21
Advisories
White Collar, Investigations & Government Controversies
DOJ Announces Tougher Stance on Corporate Criminal Enforcement Read More
DWT logo
©1996-2025 Davis Wright Tremaine LLP. ALL RIGHTS RESERVED. Attorney Advertising. Not intended as legal advice. Prior results do not guarantee a similar outcome.
Media Kit Affiliations Legal notices
Privacy policy Employees DWT Collaborate EEO

SUBSCRIBE
©1996-2025 Davis Wright Tremaine LLP. ALL RIGHTS RESERVED. Attorney Advertising. Not intended as legal advice. Prior results do not guarantee a similar outcome.