SEC Commissioner Stein Praises The Dodd-Frank Whistleblower Reward Program
On June 28, 2018, SEC Commissioner Kara Stein issued a public statement lauding the Dodd-Frank whistleblower reward program. The Dodd-Frank whistleblower reward program is also called the SEC whistleblower program.
Along with Commissioner Stein, the current SEC Chair and two other SEC Commissioners each made their own separate comments strongly supporting the Dodd-Frank whistleblower reward program. (The only Commissioner who did not issue any statement had already announced that he was stepping down from the Commission and was awaiting the appointment of his successor.)
Commissioner Stein Calls The Dodd-Frank Whistleblower Reward Program “A Resounding Success”
In her statement, Commissioner Stein called the SEC whistleblower program “a resounding success”. Among other things, Commissioner Stein pointed out that under the SEC whistleblower program:
From the time the Commission’s whistleblower rules were adopted in 2011 until the end of 2017, the Commission has received over 22,000 whistleblower tips. These tips have resulted in more than $1.4 billion in financial remedies. Of this amount, the majority has gone back to harmed investors.
The Dodd-Frank Whistleblower Reward Program Is “Good Government”
Commissioner Stein also remarked that the Dodd-Frank whistleblower reward program “is exactly that — good government”. She went on to explain that the Dodd-Frank whistleblower reward program:
incentivizes the private marketplace to better surveil itself and has resulted in the government bringing cases against fraudsters it might not otherwise have discovered. Incentivizing market participants and others to provide information about wrongdoing has helped protect more investors, preserve the integrity of our capital formation process, and ensure that our markets are fair and efficient.
Commissioner Stein added that the SEC whistleblower program “has more than paid for itself. There are not many government programs that can make that claim.”
To read Commissioner Stein’s statements lauding the Dodd-Frank whistleblower reward program, click on the links below:
- Public Remarks by SEC Commissioner Stein. (External link to the SEC’s website.)
- The SEC’s press release about its whistleblower award program. (External link to the SEC’s website.)
- Article “GOP, Dems, And Independents All Agree On One Thing: The SEC’s Whistleblower Program”. (Note: external link to The Pickholz Law Offices website.)