In a recent article featured by Main Justice, reporter Jeffrey Benzing says, "(T)he money is real." This is how some people felt after the SEC announced on Aug. 21, 2012, that it would pay its first award under the new whistleblower program created under the 2010 Dodd-Frank Act.
This act authorized the whistleblower program to reward people who offer high-quality, original information that leads to an SEC enforcement action in which more than $1 million in sanctions is ordered.
"A whistleblower is not required to report through an attorney, but many individuals want their identities protected, and the office requires that they report through a lawyer if they wish to file a tip anonymously," says Motley Rice whistleblower attorney and member Rebecca Katz in the article.
Katz also says, "The key benefit of the first award announcement is that it shows the SEC stands by a commitment to keep a whistleblower's identity truly confidential."
Katz expects more awards to be announced soon, saying the program, "…isn't a flash in a pan. This is for real—it's staying."
Motley Rice SEC whistleblower attorneys represent people in litigation against corporations accused of securities law violations. Learn more about Motley Rice's whistleblower practice.