Record-Breaking Year For SEC’s Whistleblower Award Program

According to the SEC’s Annual Report to Congress, 2018 “was a
record-breaking year” for the
SEC’s whistleblower award program.

OWB Chief’s Message About the SEC’s Whistleblower Award
Program

The SEC’s 2018 Report To Congress

Each year, the U.S. Securities and Exchange Commission’s
Office of the Whistleblower (“OWB”) is required to submit a
report to the U.S. Congress about the SEC’s whistleblower
award program.

The annual report informs Congress about the OWB’s activities,
SEC whistleblower complaints received, and the SEC’s response
to those whistleblower complaints.  Among other things, the
report is required to address the SEC’s whistleblower award
program, including the number of
SEC whistleblower awards granted, the types of
SEC whistleblower cases in which
awards were granted, and other information.  (Report, p. 4.)

This year’s annual report on the SEC’s whistleblower award
program was released publicly in November 2018.

The annual report starts with a message from the Chief of the
OWB.  In the very first line of this year’s annual report, the
Chief of the OWB announced that fiscal year 2018 “was a
record-breaking year” for the SEC’s whistleblower award
program. (Report, p. 1.)

Record Year For SEC Whistleblower Rewards Given Out

In FY 2018, the Commission gave out its largest
SEC whistleblower rewards to date.  (Report, p. 1.)  One award was for almost $50
million, which was divided between two whistleblowers. 
Another award was for $39 million granted to one individual. 
(Report, p. 13.)

The SEC also gave out more awards in terms of dollars during
FY 2018 “than in all prior years combined”. During FY 2018,
the SEC gave out over $168 million to 13
SEC whistleblowers.  Since
the SEC’s whistleblower award program began, the Commission
has granted more than $326 million in rewards to 59
whistleblowers in 48 cases and related actions.  (Report, pp.
1, 16.)

Record Year For SEC Whistleblower Tips

In FY 2018, the Commission also received more SEC
whistleblower tips “than in any other previous year”. 
(Report, p. 1.)

The SEC received 5,282 whistleblower tips in FY 2018.  This
was an increase of 798 tips over FY 2017.

According to the annual report, “Throughout the history of the
whistleblower program, the Commission’s receipt of
whistleblower tips has reflected an upward trajectory” year
over year, every year.  (Report, p. 20.)

The report also noted that “In the months following the
Digital Realty decision [by the U.S. Supreme Court],
there was an increase in the number of whistleblower tips
received by the Commission, which may have been attributable,
in part, to the decision.”  (Report, pp. 2, 18.)  In February
of this year, I wrote a blog about the Supreme Court’s
decision in Digital Realty.  You can read that blog
by clicking
here. I also discussed that case live on Bloomberg Radio.  You
can listen to that program by clicking
here.

SEC Whistleblower Protections To Remain A Priority

Protecting whistleblowers continues to be a priority for the
SEC’s whistleblower award program.  In the annual report, the
Commission asserts:

Anti-retaliation protections continue to be a critical
component in the success of the Commission’s whistleblower
program…. enforcement actions against companies and
individuals who retaliate against whistleblowers or take
actions to impede whistleblowers’ communications with the
Commission will remain a focus of OWB’s mission in the
upcoming fiscal year.  (Report, p. 2.)

If you would like to read the FY 2018 annual report on the
SEC’s whistleblower award program, you can find it on the
SEC’s website by clicking
here.

* * *

About the Pickholz Law Offices LLC

The Pickholz Law Offices LLC is a law firm that focuses on
representing clients involved with investigations conducted by
the U.S. Securities and Exchange Commission, FINRA, and other
securities regulators.

The Pickholz Law Offices has represented employees, officers,
and others in SEC whistleblower cases involving financial
institutions and public companies listed in the Fortune Top
10, Top 20, Top 50, Top 100, Top 500, and the Forbes Global
2000. We were the first law firm ever to win an SEC
whistleblower award for a client on appeal to the full
Commission in Washington. Inside Counsel magazine named this
achievement one of the five key events of the SEC
whistleblower program. Examples of the
Firm’s SEC whistleblower cases are available here.

In addition to representing SEC whistleblowers, since 1995 the
Firm’s founder, Jason R. Pickholz, has also represented many
clients in securities enforcement investigations conducted by
the SEC, FINRA, the U.S. Department of Justice and US
Attorney’s Offices, State authorities, and more. Examples of
some of the many
securities enforcement cases that Mr. Pickholz has been
involved with are available here.

You can see what actual clients have had to say about The
Pickholz Law Offices by going to the
Client Reviews page on our website or by clicking here.

How to Contact the Pickholz Law Offices LLC

If you would like to speak with a securities lawyer or SEC
whistleblower attorney, please feel free to call Jason R.
Pickholz at 347-746-1222.

The Pickholz Law Offices remains open and will be fully
operational through teleworking while we all grapple with this
terrible pandemic. We hope that all of our clients,
colleagues, friends, and their families remain safe and
healthy. Our thoughts and prayers go out to everyone who has
been affected by COVID-19.