SEC Commissioner Peirce Commends The SEC Whistleblower Program
On June 28, 2018, Commissioner Hester Peirce of the United States Securities and Exchange Commission posted written observations about the SEC whistleblower program.
In the SEC context, the term “Commission” means the five people who were nominated by the U.S. President and approved by the U.S. Congress to run the Securities and Exchange Commission. There are two Democratic Commissioners, two Republican Commissioners, and the SEC Chair.
Along with Commissioner Peirce, two of the other three active SEC Commissioners and the SEC Chair released their own separate written statements commending the SEC whistleblower program. (One SEC Commissioner did not make any statements, but he had already announced that he was stepping down from the Commission and was awaiting the appointment of his successor.)
The SEC’s Whistleblower Program “Is A Critical Part Of” Its Enforcement Program
Commissioner Peirce remarked that “The SEC’s whistleblower program is a critical part of our enforcement program”. She then recognized that:
The most important part of our Whistleblower Program, of course, is the whistleblowers themselves, who bring to our attention securities law violations that otherwise might not come to light for years or even forever.
The SEC’s Press Release About Its Whistleblower Program
A press release issued by the SEC that same day corroborated Commissioner Peirce’s observations. As stated in the press release, the SEC whistleblower award program “has made significant contributions to the effectiveness of the agency’s enforcement of the federal securities laws.”
The press release further explained that:
Original information provided by whistleblowers has led to enforcement actions in which the Commission has ordered over $1.4 billion in financial remedies, including more than $740 million in disgorgement of ill-gotten gains and interest, the majority of which has been, or is scheduled to be, returned to harmed investors.
To read SEC Commissioner Peirce’s written statement commending the SEC whistleblower award program, click on the links below:
- Written Remarks by SEC Commissioner Peirce. (External link to the SEC’s website.)
- The SEC’s press release about its whistleblower 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.)