The SEC and CFTC Whistleblower Programs Passed the Milestone in the 2023 Fiscal Year
WASHINGTON, Nov. 17, 2023 /PRNewswire/ — Combined, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have awarded more than $2 billion to whistleblowers. The agencies’ whistleblower programs, which were created alongside each other with the passage of the Dodd-Frank Act in 2010, passed the $2 billion threshold during the 2023 Fiscal Year.
“Passing the $2 billion threshold in whistleblower awards is a major milestone for the Dodd-Frank whistleblower programs and a testament to how they have revolutionized the enforcement of white-collar crime,” said whistleblower attorney Stephen M. Kohn of Kohn, Kohn & Colapinto. “The $2 billion in awards corresponds with several billions of dollars that whistleblowers have allowed the SEC, CFTC, and other agencies to recover for harmed investors.”
Earlier this year, Kohn, Kohn & Colapinto launched indexes tracking all the award orders issued by both the SEC and the CFTC.
Under the programs, qualified whistleblowers, individuals who voluntarily provide original information that leads to a successful enforcement action, are entitled to monetary awards of 10-30% of the funds collected by the government. The CFTC has awarded approximately $365 million to whistleblowers and the SEC has awarded approximately $1.9 billion.
“While the SEC and CFTC have established highly effective whistleblower programs, further reforms are needed to ensure they can continue to operate at the highest level,” Kohn added. “Congress needs to prioritize bipartisan legislation currently pending which would help whistleblowers recover many more billions of dollars for taxpayers and harmed investors.”
Introduced in July, the bipartisan CFTC Whistleblower Fund Improvement Act of 2023 provides a long-term fix to a funding crisis threatening the CFTC Whistleblower Program. The bill raises a cap on the fund used to finance the program. The cap, set in 2010, has not been altered to match the remarkable growth of the program.
Introduced in March, the bipartisan SEC Whistleblower Reform Act of 2023 looks to improve conditions for internal whistleblowers who report to corporate compliance, address the programs long delays, and make sure that nondisclosure agreements do not silence whistleblowers.
Kohn is available for further comment on the matter.
Kohn, Kohn & Colapinto LLP
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SOURCE Kohn, Kohn & Colapinto