The SEC’s Whistleblower Program in 2016: Has it “Hit its Stride” After Five Years?

In July of 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). Section 922 of Dodd-Frank amended the Securities Exchange Act of 1934 (“the Act”) by adding Section 21F, which is titled “Securities Whistleblower Incentives and Protection.” In Section 21F, Congress required the Securities and Exchange Commission (“SEC”) to create a Whistleblower Program designed to provide monetary awards of 10% - 30% of a penalty recovery by the SEC to individuals who provide the SEC with information regarding possible securities laws violations that lead to the recovery.