Securities and Exchange Commission (“SEC”) Chair Mary Jo White spoke at a conference in Toronto on Thursday, October 16, 2014, at which she extolled the virtues of the SEC Whistleblower Program, which was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) in 2010. The Dodd-Frank whistleblower reward program created a system under which individuals who provide original information concerning securities violations to the SEC may receive 10 to 30 percent of any money obtained through enforcement actions made possible by the whistleblower’s tip, provided that the SEC recovers at least $1 million. According to the Financial Post, Ms. White described the SEC whistleblower program as “enormously successful.”
Ms. White went on to say that that program had yielded “very significant information on very serious securities fraud.” Ms. White explained that the SEC enforcement action that resulted in a $30 million whistleblower award in September 2014 came as a result of fraud that would have been “very difficult to detect” without the help of a whistleblower tip. Ontario has been considering its own version of the SEC’s whistleblower reward program since late 2010, according to the Financial Post.