SEC.gov | Office of the Whistleblower (2024)

FAQs

SEC.gov | Office of the Whistleblower? ›

How do I apply for an award? Once the case you believe your information led to is posted, you must complete and return Form WB-APP within 90 calendar days to the Office of the Whistleblower via email to FormWB-APPSubmission@sec.gov, by fax (703) 813-9322, or by mail to the address listed on OWB's website.

How do I apply for an award? Once the case you believe your information led to is posted, you must complete and return Form WB-APP within 90 calendar days to the Office of the Whistleblower via email to FormWB-APPSubmission@sec.gov, by fax (703) 813-9322, or by mail to the address listed on OWB's website.

The Securities and Exchange Commission today announced the largest-ever award, nearly $279 million, to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions.

The SEC whistleblower program contains three basic elements to encourage whistleblowers to come forward with information about possible securities law violations: significant monetary awards, confidentiality and anti-retaliation protections.

You can reach the Office of the Whistleblower at (202) 551-4790.

A whistleblower of a False Claims Act is supposed to receive 15% to 25% of the case value or the amount paid by the defendant if the government intervenes. And 25% to 30% if the whistleblower goes on by him or herself. Some of the percentages are different under state laws.

After whistleblowers submit a timely application for an award, the Claims Review Staff will assess all timely applications to determine: (1) whether a whistleblower is eligible for an award; and (2) the amount of the award. Currently, the claims review process takes approximately 2 years to complete.

How long does it take for the SEC to investigate alleged securities violations? Longer than you might think. Typically, SEC investigations take two to four years to complete.

The awards are subject to Federal & State taxes – taxed at the highest rates for ordinary income (37% - at the Federal Level & 13% in California).

In the settlement announced Tuesday, Olympus will pay $310 million to settle civil claims by the federal government and state, and Slowik gets $51 million — one of the largest whistleblower awards in history. Olympus also agreed to pay $312 million in criminal penalties to avoid prosecution.

Who is eligible for the SEC whistleblower? ›

Key Eligibility Factors: The information must be original, something not known to the SEC. The tip must be provided voluntarily, before the agency has reported the information. The whistleblower's submission must lead to a successful enforcement action resulting in monetary sanctions exceeding $1 million.

To qualify for protection, the whistleblower must have reasonable grounds to suspect that the information they will disclose indicates misconduct.

Who can be a whistleblower? Anyone with specific and detailed information about significant fraud against the government, securities law violations, commodity law violations or tax violations can be a whistleblower and qualify for protection against job retaliation and rewards in some instances.

OSHA will ask the Respondent to provide a written defense to the allegations, also known as a position statement. Both parties are expected to actively participate in the investigation and to respond to OSHA's requests. Both parties are also given an opportunity to rebut the opposing party's position.

Whistleblowers (known as “relators” in qui tam lawsuits) are awarded a whistleblower reward based on a percentage of the money recovered by the government when those recoveries are due to a qui tam lawsuit or claims made under the SEC, CFTC or IRS whistleblower programs.

Edward Snowden

In 2013, Edward Snowden, a former computer intelligence consultant, released documents on top-secret National Security Agency programs to reporters at The Guardian and the Washington Post. Snowden tried to raise his ethical concerns about the global surveillance programs internally but was ignored.

Whistleblower awards can range from 10 to 30 percent of the money collected when the monetary sanctions exceed $1 million. As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower's identity.

3. Prevents issues escalating. One of the greatest benefits of whistleblowing in an organisation is that it provides the opportunity to catch problems early on. When the information is shared directly with the dedicated team, the company can deal with the concern immediately, before it escalates.

MOST WHISTLE-BLOWERS ARE FIRED

Seventy-four percent of the whistle-blowers in my review were terminated. Another 6 percent were suspended and 5 percent were transferred against their wishes. The remaining 15 percent were given poor evaluations, demoted or harassed.

Whistleblower payments are withdrawn from an investor protection fund established by Congress. Rewards can range from 10% to 30% of the money collected when sanctions exceed $1 million.

How many lottery winners go into debt? ›

The lottery does change people, but sometimes for the worse. According to the National Endowment for Financial Education, 70% of lottery winners go bankrupt within a few years.

Woodford after the scandal

During 2011 and 2012, Woodford was recognised as "Businessperson of the Year" for bravery and whistleblowing by The Sunday Times, The Independent and The Sun, and "Person of the Year" at the Financial Times ArcelorMittal "Boldness in Business Awards" in March 2012.

Three former executives of Olympus have been given suspended jail terms for their roles in an accounting scandal. Former chairman Tsuyoshi Kikukawa and executives Hisashi Mori and Hideo Yamada pleaded guilty last year to charges of falsifying accounts to cover up losses of $1.7bn (£1.1bn).

A disclosure of waste, fraud, or abuse that includes classified information is not a protected disclosure under the whistleblower laws unless the disclosure is made in accordance with the law and rules that govern the proper handling and transmission of classified information.

To qualify as a protected whistleblower, a Federal employee or applicant for employment must disclose: a violation of any law, rule, or regulation; gross mismanagement; a gross waste of funds; an abuse of authority; or a substantial and specific danger to public health or safety.

Information for Federal employees. Overview of the WPA - The Whistleblower Protection Act (WPA) (5 U.S.C. § 2302(b)(8)) protects Federal employees or applicants for Federal employment from retaliation for making protected disclosures. The WPA also provides penalties for supervisors who retaliate against Whistleblowers.

A whistleblower reward is monetary incentive provided by the government to reward a whistleblower's disclosure of original information that leads to successful enforcement action.

Unfortunately, reporting often comes at a high price: whistleblowers risk their career, their livelihood and sometimes their personal safety to expose wrongdoing that threatens the public interest. They may be fired, sued, blacklisted, arrested, threatened or, in extreme cases, assaulted or killed.

The Labor Department's Occupational Safety and Health Administration (OSHA) administers 25 private sector whistleblower laws that prohibit retaliation against individuals who make protected whistleblowing disclosures.

What is evidence of whistleblowing? ›

Whistleblowing means disclosing information that you reasonably believe is evidence of a violation of any law, rule, or regulation; gross mismanagement; a gross waste of funds; an abuse of authority; or a substantial and specific danger to public health or safety.

Call the whistleblower hotline at 1-800-649-7570. File a Whistleblower Complaint Online.

Internal channels. Most whistleblowers are internal whistleblowers, who report misconduct on a fellow employee or superior within their company through anonymous reporting mechanisms often called hotlines.

If an employee report wrongdoing that they believe is in the public interest, it is known as whistleblowing. Whistleblowing examples can include criminal activity, such as theft or unethical or unjust behaviour in the workplace, including racist, sexist or hom*ophobic behaviour.

On February 2, 1976, Gregory C. Minor, Richard B. Hubbard, and Dale G. Bridenbaugh (known as the GE Three) "blew the whistle" on safety problems at nuclear power plants, and their action has been called "an exemplary instance of whistleblowing".

Submit a Whistleblower Claim

A description of documents or supporting evidence not in the whistleblower's possession or control, and their location. An explanation of how and when the whistleblower became aware of the information that forms the basis of the claim.

To ask a question or report a problem concerning your investments, your investment account or a financial professional, contact us online or call the SEC's toll-free investor assistance line at (800) 732-0330 (if outside of the U.S., call 1-202-551-6551).

The awards are subject to Federal & State taxes – taxed at the highest rates for ordinary income (37% - at the Federal Level & 13% in California).

Ultimately whether a release is upheld will depend on a court's views and biases about the whistleblower and the defendant's motives. Even in the best of circ*mstances, predicting these outcomes is nuanced and uncertain.

OSHA will interview the Complainant to obtain information about the alleged retaliation, and will determine whether the allegation is sufficient to initiate an investigation under one or more of the whistleblower protection statutes administered by OSHA.

How long does an SEC complaint take? ›

The length of an SEC investigation can vary depending on the facts and circ*mstances of the case. However, in most cases, the SEC will take a many months to investigate a company or individual before making a decision on whether to take enforcement action.

In general the amount of the award will be at least 15 percent but no more than 30 percent of the proceeds collected in which the Whistleblower Office determines that the information submitted by the whistleblower substantially contributed to the IRS' detection and recovery of proceeds collected.

In total, the whistleblower can get the award amount of between 10 and 30 percent of the total monetary sanctions collected in the enforcement action. After the award is approved, it typically takes between 12 and 18 months for the SEC to send the monetary award.

Traditional certificates, plaques, medals, and pins usually are not taxable. Cash and cash equivalents given as awards are generally taxable, regardless of the amount. Checks are the most common form of a cash equivalent. Gift certificates and vouchers with a clear face amount are also cash equivalents.

Proving Whistleblower Retaliation Claims

In order to prove whistleblower retaliation against an employer, the employee must show that he or she has engaged in "protected activity." This typically means disclosing unlawful activity by the business to the government or another overseeing entity.

The bulk of the investigation generally consists of the evaluation of documents (including evidence received from the whistleblower), as well as interviews with employees and potential further discussions with the whistleblower.