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SEC Annual Report: A Valuable Resource for the Potential SEC Whistleblower, SEC Whistleblower Lawyer, and SEC Whistleblower Law Firm

Questions Clients Often Ask An SEC Whistleblower Law Firm

As an SEC whistleblower lawyer, I often hear questions like “How many whistleblower tips does the SEC get each year?” “How many tips get through to the investigation stage?” and other similar questions.  It is not uncommon for a client to ask one or more of these questions when interviewing a potential SEC whistleblower law firm.

Because the SEC whistleblower program has not been around for decades, there is not a lot of hard data about it yet.  This can sometimes make it difficult for an SEC whistleblower lawyer to answer questions about it with a high degree of specificity.  For an SEC whistleblower law firm, this problem is compounded by the fact that the SEC has only kept full-year statistics on its whistleblower program since fiscal year 2012.

SEC whistleblower law firm

SEC Annual Report: A Wealth of Data for an SEC Whistleblower Law Firm

Fortunately, every year the SEC is required to submit an annual report to Congress on the SEC whistleblower program.  This report can be a valuable resource for an SEC whistleblower law firm, and for potential SEC whistleblowers.

The SEC's Office of the Whistleblower (“OWB”) recently released its annual report to Congress for fiscal year 2016 (the “Report”).  This year’s Report states that:

  • In FY 2016, the SEC gave out more than $57 million in whistleblower awards, “higher than all award amounts issued in previous years combined”.
  • Six of the ten largest SEC whistleblower awards were given out in FY 2016, an indication that the SEC whistleblower program is growing.  (Report, p. 10.)
  • Since the inception of the SEC whistleblower program, the Commission has awarded more than $111 million.  (Report, p. 1.)
  • In FY 2016, The SEC received over 4,218 tips from whistleblowers, “a more than 40 percent increase” since FY 2012.  (Report, pp. 1, 23.)
  • Since August 2011, the SEC has received 18,334 whistleblower tips.  (Report, p. 23.)

According to the report, the OWB “tracks whistleblower tips that are referred to Enforcement staff for investigation or follow-up.  OWB is currently tracking over 800 matters in which a whistleblower’s tip has caused a Matter Under Inquiry or investigation to be opened or which have been forwarded to Enforcement staff for review and consideration in connection with an ongoing investigation.”  (Report, p. 27.)

There are some variables that I do not have data for.  But based on these figures, a reasonable estimate would be that approximately 5%-7% of all whistleblower tips that the SEC receives cause investigations to be opened or substantially contribute to ongoing investigations.  These are prerequisites to obtaining an SEC whistleblower award.

For Those Considering Whether to Hire an SEC Whistleblower Law Firm

For potential SEC whistleblowers, these percentages are important.  They highlight the importance of hiring a knowledgeable SEC whistleblower law firm.  An experienced SEC whistleblower law firm can help to focus the facts and issues, connect them to the securities laws, and present them in a compelling way.  These things will hopefully increase the chances of a tip leading to the opening of an investigation or substantially assisting in an already ongoing investigation.

This comports with comments made in a speech by the SEC’s Director of Enforcement in September.  In his speech, the Director said that the SEC welcomes the involvement of SEC whistleblower law firms.  He also described some of the ways that they can add value to the SEC whistleblower process.  You can read my post about the Director’s speech here.

The SEC's Annual Report to Congress on the Dodd-Frank Whistleblower Program contains a lot of other interesting information.  If you would like to read the Report for FY 2016, you can find it by clicking on the link next to the picture above.

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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.

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The Pickholz Law Offices represents U.S. and international clients in securities and white collar cases. The Firm has helped whistleblowers report frauds to the SEC, CFTC, and IRS, and has defended clients in investigations by the SEC, CFTC, DOJ, FINRA, and other financial and securities enforcement regulators.

The Firm’s founder, Jason Pickholz, is the author of the two-volume book Securities Crimes, has appeared on tv and radio, and has taught continuing legal education courses. A former BigLaw partner, he has been representing clients in financial and securities fraud cases since 1995. In recognition of his many achievements, Mr. Pickholz was elected by his legal peers to be a Fellow of The New York Bar Foundation, an honor limited to just 1% of all attorneys in the New York State Bar Association.

Mr. Pickholz has been counsel in many high-profile cases. He was the first attorney ever to win an SEC whistleblower award on appeal to the Commission, which Inside Counsel magazine called one of the five key events in the history of the SEC whistleblower program. On the defense side, Mr. Pickholz has defended clients in the SEC’s COVID-19 investigations, the CFTC’s cryptocurrency cases, and a former US Senator, among others.

If you want to speak with a CFTC, IRS, or SEC whistleblower lawyer, or with a white collar defense lawyer, you can call the Firm at 347-746-1222.

The above information is not and should not be construed as providing legal advice. It is not and should never be considered as a substitute for consulting with your own lawyer. The use of this web site or this page does not constitute or create any attorney-client, fiduciary, or confidential relationship between The Pickholz Law Offices LLC and anyone using this web site, or anyone else. The information contained on this website is for informational purposes only. The content of this web site may not reflect current developments. Prior results do not guarantee a similar outcome. Results of prior cases or matters contained on this web site are not indicative of future results or outcomes, and should not be taken as a prediction, promise, or guarantee of any future result or outcome. No one who accesses this web site should act or refrain from acting based on anything contained on this web site. For additional terms-of-use and conditions governing the use of this web site, please view our full Terms and Conditions.