Under the program, which is governed by the Dodd-Frank Act, tipsters can anonymously report private business or government wrongdoing and receive up to 30% of the proceeds of the penalties levied on the alleged wrongdoers.
The whistleblower program includes provisions to protect whisteblowers’ identity and to prevent retaliation. According to the SEC,
“The Dodd-Frank Act included enhanced anti-retaliation employment protections for whistleblowers and provisions to protect their identity. The law specifies that the SEC cannot disclose any information, including information the whistleblower provided to the SEC, which could reasonably be expected to directly or indirectly reveal a whistleblower’s identity.”
The whistleblower program covers a wide range of securities violations and financial fraud. Examples of violations that might be covered by the whistleblower program include false or misleading financial statements, defrauding investors, money-laundering, insider trading, breaking trade sanctions, and violations of the Foreign Corrupt Practices Act, which bans bribes and gifts to officials in order to illegally win contracts and other favors.