Nov 16

2011 Annual Report on the Dodd-Frank Whistleblower Program

Tags: , ,

Yesterday, the Securities and Exchange Commission released its Annual Report on the Dodd-Frank Whistleblower Program for the Fiscal Year 2011, which ended on September 30th. Because the Final Rules became effective on August 12, 2011, the report only includes data for the seven weeks between August 12th and September 30th.

The S.E.C. reports receiving 334 whistleblower tips during this time period.  The most common complaint categories were market manipulation (16.2%), corporate disclosures and financial statements (15.3%), and offering fraud (15.6%).

Excluding the 26% of the complaints that did not indicate a state location, most of the complaints came from California and New York. In addition, 32 of the tips originated from a foreign country, including 10 from China and 9 from the United Kingdom.

Not surprisingly, the S.E.C. report indicates that no whistleblower bounties had been paid through September 30, 2011. Given the short reporting window of the current report, the next annual report should provide greater insight into the effectiveness and efficiency of the program.

For more information about the S.E.C. Whistleblower Program, see or contact Rosanne at Felicello Law P.C.