By the Constantine Cannon Whistleblower Team
Last week (April 21), the Securities Exchange Commission (SEC) announced a $6 million award to two whistleblowers who caused the agency to open an investigation that led to a successful enforcement action. It is the first award the SEC announced since President Trump took office and a good indication the new administration will continue to support the SEC Whistleblower Program.
The Success of the SEC Whistleblower Program
Under the program, whistleblowers who provide information that leads to a successful enforcement action can receive up to 30% of the government’s recovery. The program has been extremely successful since it launched in 2011, with an increasing amount of whistleblower tips every year along with a significant boost in SEC enforcement.
Indeed, as reflected in the SEC’s most recent Annual Whistleblower Report, the SEC received roughly 25,000 whistleblower tips in 2024 (although 14,000 of them came from just two individuals). In addition, the SEC made roughly $255 million in awards to 47 whistleblowers last year, bringing the total awards tally to date to more than $2.2 billion to roughly 450 individual whistleblowers.
The SEC’s Continued Commitment to the Program
But with the Trump presidency, some questioned whether the securities regulator would in any way pull back on its strong support for the whistleblower program. This latest award, and the agency’s press release promoting it, strongly suggests the SEC’s continued commitment to the program.
Acting Chief of the SEC’s Whistleblower Office Jonathan Carr used the award to remind would-be whistleblowers that potential awards await those whose information leads to a successful enforcement action: “Today’s award illustrates that the agency can leverage whistleblower information in various ways, including by prompting an examination. If that examination ultimately results in an enforcement action, the whistleblower may be eligible for an award.”
This most recent award is notable because it resumes what had been an SEC tradition of publicly promoting each whistleblower award it makes. The last award the SEC issued a press release for was the $12 million award it made to three whistleblowers back in October 2024. Since then, the SEC made roughly a dozen awards but made no public announcement for any of them.
SEC Whistleblower Chief Leadership Change
Also notable is the press release announcing the latest award, which identified Mr. Carr as the acting head of the SEC’s Whistleblower Office. He had previously been the Assistant Director of the Office. It was the first indication that former chief Creola Kelly stepped down. Unlike other high-level SEC departures and appointments, this one seemingly fell through the cracks. It is anyone’s guess why the SEC kept this leadership change under wraps.
Constantine Cannon whistleblower partner Gordon Schnell does not attach any special significance to this oversight “given the turmoil at the agency with all the departures and leadership changes, not to mention the major changes in enforcement priorities.” Schnell also noted the Mr. Carr was elevated from within the Whistleblower Office, which in his view “further suggests the SEC is not moving towards any major policy shift in its support for and treatment of whistleblowers.”
Constantine Cannon Has Substantial Experience Representing SEC Whistleblowers
Constantine Cannon has extensive experience representing SEC whistleblowers. And while we have noticed some changes in where the SEC is focusing its enforcement energies, we have not experienced any significant change in how the SEC is receiving our clients or in the agency’s interest in the information we and our clients are providing.
So by all accounts, the SEC Whistleblower Office remains open for business and very much wants to hear from you. If you would like to learn more about the program or want to know what it means to be a whistleblower, please don’t hesitate to contact us. We will connect you with an experienced member of our whistleblower team.
Read SEC Announces First Whistleblower Award Under Trump at constantinecannon.com
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