SEC's Whistleblower Program Gains Momentum in 2018

Posted on November 28th, 2018 at 2:21 PM
SEC's Whistleblower Program Gains Momentum in 2018

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC’s whistleblower program has been an important tool for individuals since 2011. The awards are distributed from an investor protection fund established by Congress. To obtain an award, the whistleblower’s information must be unique, useful and lead to a successful enforcement action. 

In 2018, the SEC’s whistleblower program continued to increase in popularity. Moreover, after nearly seven years of experience administering the whistleblower program, the SEC has issued more awards this year than all other years of the program combined. The SEC has awarded approximately $168 million to 13 whistleblowers through September of this year. In addition, so far in 2018, the SEC has received more than 5,200 tips from whistleblowers, which is nearly a 20% increase from last year.

Many experts point to a recent U.S. Supreme Court decision in Digital Realty Trust Inc. v. Somers, as one reason why there was a significant increase in whistleblower tips to the SEC. In Digital Realty, the Supreme Court ruled that whistleblowers must report their concerns to the SEC, rather than to another government agency or their employer, to be protected from retaliation. Therefore, this ruling limited the channel for employees to report their concerns, thereby increasing the number of tips submitted directly to the SEC.

Eccleston Law, LLC helps individuals file and document their SEC whistleblower claims while maintaining confidentiality. Please contact us for further information.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, SEC, fraud, whistleblowers, supreme court

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