The SEC Remains Active With Whistleblowers

In 2010, Congress gave the U.S. Securities and Exchange Commission (SEC) the ability to pay monetary awards to whistleblowers whose tips lead to successful enforcement actions. After a slow start, the program is in full swing, with tips pouring in as the SEC increasingly pays out big awards, more than $107 million to date. The SEC has declared that its whistleblower program has "transformed" the agency and that it intends to bring more and more enforcement actions based on insider tips.

Over the last month, the SEC has been particularly active, bringing a pair of enforcement actions against two companies who asked employees to waive their right to recover awards under the SEC's whistleblower program and also issuing two significant awards to whistleblowers.