SEC Reports Increase In Whistleblower Tips

The SEC's whistleblower office reported 3,923 tips in the last fiscal year, resulting in $37 million in awards for reporting securities violations. Tips came in from all 50 states as well as Washington, D.C., and 61 foreign countries. The most common tips reported by whistleblowers pertained to disclosure issues, followed by fraud and stock manipulation, which is consistent with prior years. Eighty percent of award recipients reported their concerns internally before coming to the SEC. Enforcement leaders at the SEC and DOJ said their agencies are getting a higher number of tips alleging violations of the Foreign Corrupt Practices Act, and those tips are increasingly sophisticated, as employees better understand information needed by authorities to open investigations.