Last week, SEC Chair Gary Gensler gave a speech at a celebration for National Whistleblower Day, which commemorates the first U.S. whistleblower law that was passed unanimously on July 30, 1778. The law was passed after ten whistleblowers reported wrongdoing and abuses committed by a superior officer in the Continental Navy. Since 2015, the National Whistleblower Center has held an annual celebration on July 30th to honor and celebrate whistleblowers.
In his speech, Gensler noted that the SEC has paid out more than $900 million to nearly 180 whistleblowers through the SEC’s program administered by the Office of the Whistleblower. Gensler indicated that he has asked staff “to examine whether and how the program could be further strengthened to ensure that misconduct within the remit of the SEC is identified, addressed, and stopped.”
Yesterday, the SEC announced that it had paid more than $4 million to four whistleblowers who provided information and assistance in two separate enforcement proceedings. In accordance with the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not reveal a whistleblower’s identity.
– Dave Lynn