Tuesday, March 12, 2013

Whistleblower Tips Surpass 3,000 in 2012

According to a recent report issued by the Securities and Exchange Commission, the SEC’s Office of the Whistleblower (OWB) logged 3,001 tips from all 50 states (as well as D.C. and Puerto Rico) and 49 countries in fiscal year 2012. The most common complaints were related to corporate disclosures and financials (18.2%), offering fraud (15.5%), and manipulation (15.2%).

“In just its first year, the whistleblower program already has proven to be a valuable tool in helping us ferret out financial fraud,” said then-SEC Chairman Mary L. Schapiro in a statement about the report. “When insiders provide us with high-quality road maps of fraudulent wrongdoing, it reduces the length of time we spend investigating and saves the agency substantial resources.”

The SEC is authorized to pay whistleblowers 10% to 30% of the sanctions collected; these awards are drawn from the Investor Protection Fund established by Congress.

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