August 5, 2025
Even the largest and longest-running frauds can be brought to a screeching halt by a single person who uncovers the scheme and reports it to the government. In recognition of the critical role played by whistleblowers, a number of programs have been established to provide them with substantial financial awards if their information leads the government to recover money from the wrongdoers.
One example is the Securities and Exchange Commission Whistleblower Program. It was established after the Financial Crisis of 2008 and incentivizes whistleblowers to come forward by offering financial awards generally equal to 10-30% of the amounts that the SEC recovers based on the whistleblower’s information. These awards can be substantial. As shown in the graph below, there has been a broad upswing in the amounts of awards paid to whistleblowers by the SEC, punctuated by some extraordinary years that included particularly large awards.
Three Things to Know About the SEC Whistleblower Program
- The identity of whistleblowers is treated as confidential by the SEC. The SEC will take all reasonable steps to preserve whistleblower confidentiality and does not disclose publicly the identity of whistleblowers even at the end of a case when an award is made. In fact, whistleblowers who are represented by counsel are allowed to submit their information to the SEC without revealing their identity even to the SEC, unless and until the whistleblower applies for an award.
- There are many procedural rules that whistleblowers must follow in order to be eligible for an award, including rules about who can be a whistleblower, when their information must be reported, in what form, and the types of information that qualify for an award. There are also rules that concern how whistleblowers can make an application for an award if a recovery is obtained by the SEC, and the factors that will be considered in determining the amount of an award.
- While a whistleblower must provide information to the SEC that it is not already aware of to qualify for an award, there is no requirement that a whistleblower be a corporate insider. Indeed, many successful SEC whistleblowers are not insiders – they may be industry professionals who came upon evidence of fraud or other securities law violations in the course of their work, or who investigated a company and discovered those violations.
Navigating the Whistleblower Process: Don’t Go It Alone
Individuals who have information about fraud and who wish to participate in a whistleblower award program should retain experienced whistleblower counsel to advise them throughout the process on how to:
- Gather the supporting evidence
- Submit their information to the government in a comprehensive and persuasive manner
- Comply with all procedural requirements to be entitled to an award
- Work productively with the government to assist and facilitate their investigation and enforcement efforts
- Apply for and obtain the highest possible award if the government obtains a recovery
Make Your Information Count
The decision to blow the whistle can be one of the most impactful actions an individual can take to expose fraud, protect investors, and uphold the integrity of our markets. The SEC Whistleblower Program and others like it offer meaningful awards for those who come forward with original, credible information.
If you believe you’ve uncovered fraud, your next step matters. The path to a successful whistleblower award is complex, but you don’t have to navigate it alone. Our team has the experience to help you build a powerful submission, safeguard your interests, and pursue the award you deserve.
Remember, one person can put a stop to fraud.