Big Reward Potential Likely to Lure More Whistleblowers to the SEC

According to Time, the new SEC whistleblower reward program established by the Dodd-Frank Act will likely lead to a substantial increase in the reporting of fraud and other wrongdoing by public companies to the SEC.  Under the previous SEC reward program, the SEC granted rewards between 0% and 10% to whistleblowers at the SEC’s discretion.  Under the Dodd-Frank Act, the SEC is now required to grant a reward between 10% and 30% to each whistleblower providing original information leading to a sanction that exceeds $1 million.

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Tagged: Dodd-Frank Act, Whistleblower Laws (Federal)