The U.S. Securities and Exchange Commission recently released its Annual Report to Congress for Fiscal Year 2024, highlighting the significant achievements of its Whistleblower Program. The program is—and has been—a significant component in the protection of investors and maintaining market integrity through incentivizing reporting of possible violations of the securities laws by individuals.
Top 5 SEC Whistleblower Awards for 2024
In 2024, the U.S. Securities and Exchange Commission (SEC) continued to recognize the invaluable contributions of whistleblowers in uncovering securities law violations. The SEC’s Office of the Whistleblower awarded over $255 million to 47 individuals, marking the third-highest annual total since the program’s inception. Here are the top five whistleblower awards finalized in FY 2024:
1. Two Whistleblowers Share Approximately $98 Million
On August 23, 2024, the SEC awarded a total of about 82 million in information that led to the start of investigations and also led to ongoing critical support. The second whistleblower received about $16 million for holistically contributing to one component of the actions.
2. Whistleblower Awarded More Than $37 Million
On July 26, 2024, a whistleblower received an award exceeding $37 million. This person repeatedly raised concerns about misconduct internally, which resulted in the company internally investigating and further disclosing to the SEC. The whistleblower’s ongoing, comprehensive, and timely cooperation was essential to the successful prosecution of the enforcement action
3. Seven Whistleblowers Share Over $28 Million
On December 22, 2023, the SEC awarded more than $28 million to a group of seven whistleblowers. The detailed and relevant information that was presented early in the investigation contributed to the SEC’s work, saved resources and was closely associated with the charges filed
4. Two Whistleblowers Receive More Than $24 Million
On August 26, 2024, a couple of whistleblowers were awarded a total amount exceeding 4 million for information that initiated the investigation. The second whistleblowing received \$20 million in reward for the information and for significant cooperation that was invaluable to the success of the actions.
5. Three Joint Whistleblowers Awarded $12 Million
On October 10, 2024, the SEC awarded $12 million to be divided among three joint whistleblowers. Their large amount of information and deep collaboration in addition broadened the scope of the investigation and resulted in further charges but also saved the SEC significant time and money.
These awards underscore the SEC’s commitment to encouraging individuals to come forward with credible information about securities law violations. The whistleblower program continues to be a vital tool in protecting investors and maintaining market integrity.
Key Highlights of the SEC Whistleblower Program in Fiscal Year 2024
Record Number of Tips
The SEC received approximately 24,980 whistleblower tips in FY 2024, up sharply from the prior fiscal year. Notably, more than 14,000 of these tips came from only two individuals, which heavily influenced the total count.
Significant Awards Paid
The Commission paid more than $255 million to 47 individual whistleblowers, the third-highest annual amount since the program’s inception. Of those, there was a fairly significant award of nearly $98 million given to two whistleblowers—a reward that ranks fifth on the program’s all-time list.
Enforcement Actions to Protect Whistleblowers
The SEC redoubled efforts to protect whistleblowers by bringing 11 enforcement actions against entities and individuals that sought to interfere with whistleblower communications with the Commission—more than double the number of such actions in FY 2023, including a record $18 million penalty in one case.
Program Administration and Outreach
The Whistleblower Office (OWB) is located within the Enforcement Division of the Securities and Exchange Commission (SEC), which is responsible for administering the program. As of September 30, 2024, the OWB had a Chief, three supervisory staff, 18 attorneys, an accountant, a paralegal, an analyst, a program specialist, and four contractors providing support staff services.
In FY 2024, the OWB received 396 applications for whistleblower awards and 49 requests for reconsideration of Preliminary Determinations. The Commission issued 163 Final Orders during this period. The OWB personnel, in addition, ran a hotline that answered over 3,000 phone calls from the public, which provided answers to inquiries related to how to submit tips, how to protect one’s own privacy, and link the caller to a more specialized agency, as needed.
Effects and Implications
Since its inception in 2011, the SEC’s Whistleblower Program has awarded over $2.2 billion to 444 individual whistleblowers. The effectiveness of the program lies in its ability to incentivize or encourage the reporting of securities law violations, enabling the SEC to further enhance its enforcement capabilities and directly foster the overall health within the U.S. financial markets. For more details, see the SEC’s Annual Report to Congress for Fiscal Year 2024.