What is the SEC whistleblower program?

The SEC whistleblower program is a program designed to encourage people, including individuals, to report illegal activity in the securities industry. The program was established by the United States Securities and Exchange Commission (SEC) in 2010. It provides financial incentives, including awards, to those who report violations of the federal securities laws to the SEC. The program also provides protection for those making reports from retaliation and other negative repercussions. In Virginia, the whistleblower program is a part of the Virginia Fraud Against Taxpayers Act, passed in 2010. This law allows individuals to file a claim when they have knowledge of fraud against the state government or its agencies. The whistleblower will be entitled to a portion of the money recovered from the person committing the fraud. In addition, the whistleblower is given protection from any form of retribution by the company or individuals receiving the money, such as dismissal or discrimination. The goal of the SEC whistleblower program is to encourage early reporting of securities law violations and to promote disclosure of such activities to the SEC. The program provides monetary awards to eligible whistleblowers, who may be entitled to a reward of up to 30% of the money collected in successful enforcement actions. These awards are paid from the SEC Investor Protection Fund, which is a separate fund from other government funds. The SEC whistleblower program is an important tool for fighting fraud in the securities industry. It encourages individuals to report wrongdoing and provides financial incentives and protection from retaliation. It has the potential to help the government recover lost funds and encourages new reporting of securities law violations.

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