Featured in the Daily Business Review: What Makes a Compelling SEC Whistleblower Tip?

Scott Silver and David Chase, Securities Whistleblower Attorneys, explain to the Daily Business Review how the SEC Whistleblower Program, established under the Dodd-Frank Act in 2010, incentivizes individuals to report original information leading to enforcement actions resulting in over $1 million in sanctions. Successful whistleblowers can receive 10% to 30% of recovered funds, with over $1 billion awarded since the program's inception. Given the surge in whistleblower tips, the most compelling submissions are those that provide credible, well-documented evidence of egregious, systemic misconduct. Corporate insiders with firsthand knowledge, short sellers with thorough financial analysis, and defrauded investors with concrete proof are among the most effective whistleblowers. Cases involving high-priority enforcement areas—such as insider trading, crypto fraud, and Ponzi schemes—are more likely to attract SEC attention.

While whistleblowers can file anonymously, revealing their identity can enhance credibility and facilitate cooperation with investigators, often leading to larger financial awards. The SEC protects whistleblower confidentiality throughout the investigation process. Given the competitive nature of whistleblower filings, working with experienced legal counsel is crucial in crafting a persuasive submission, increasing the likelihood of SEC action, and maximizing potential financial rewards. Ultimately, the SEC Whistleblower Program serves as both a powerful enforcement tool and a financial opportunity for individuals who expose securities law violations, benefiting both the whistleblower and the integrity of the financial markets.