How is the SEC’s flagship program faring under the second Trump administration? To answer this question, Scott Silver of Silver Law Group, and David Chase of The Law Firm of David R. Chase discussed this issue in a recently published article on Law360 which has been widely disseminated throughout the whistleblower community. Considered to be two of the best SEC whistleblower attorneys in the country, Scott and David routinely speak at industry conferences, community events and podcasts about the SEC whistleblower program, Ponzi schemes, and other investment fraud cases.
Will The New Administration Change Things?
Since beginning in January, 2025, there have been a variety of changes to nearly every corner of every governmental agency, including the SEC. The next question is how governmental cutbacks and organizational realignments impact the program. Is the SEC reducing or rescinding its whistleblower program? Not necessarily.
Fortunately, the news is not all bad. The SEC’s Whistleblower Program is continuing as before while the agency improves and refines its internal processes. The agency is still issuing whistleblower awards, but has increased scrutiny when evaluating claims. Therefore, whistleblowers must be especially vigilant about presenting their information.
Tighter Requirements, Higher Standards At The SEC
In 2025, the SEC issued 31 denials for claims just between April 21st and July 15th. At least 55 claimants were impacted. This was the program’s highest number of denials since its inception. This increase in denials raises questions about whether the program is changing. However, despite the large number of denials, scratching below the surface reveals the SEC rejected a large number of claims because the whistleblower clearly did not follow SEC rules and procedures or did not submit material information to the SEC whistleblower office.
Anyone interested in becoming an SEC whistleblower must understand the SEC’s rules and regulations and follow them exactly so that their claim is seen. Not only must the information be valuable, but the claimants must also adhere to the SEC’s set processes for submitting information and meet its statutory requirements. The SEC is increasingly going “by the book” for whistleblower cases and closely scrutinizing submissions. Exceptions that were previously made may not be made in the future.
One of the reasons for tightening the criteria for awards is the problematic 2022 award of $14 million to short seller Carson Block. The subsequent lawsuit by a fellow claimant who demanded half stated that he was in a research partnership with Block that led to the award. The SEC paid Block even though his submission didn’t meet formal requirements. SEC staff recommended denial, leading to criticism about the inconsistent application of rules.
Two Significant Changes at the SEC Whistleblower Office
The SEC’s core functions remain unchanged. However, there is an increased emphasis on compliance with submission requirements for whistleblowers.
The SEC’s FY2026 budget request included funding of $2.15 billion and a reduction in force from 4,550 employees to 4,100.
In April, the SEC announced it was restructuring the Division of Enforcement to improve efficiency and allocation of resources. Instead of ten regions, the agency will have just three regional deputy directors for the West, Southeast, and Northeast areas, overseeing all enforcement units.
Whistleblower awards are paid from the Investor Protection Fund, which is separate from annual appropriations. Budget reductions do not impact SEC whistleblower awards.
What Do You Need For A Successful Claim?
These suggestions can contribute to a successful outcome:
- Ensure that your submission is flawless: file any tips, complaints, and referrals correctly.
- Ensure that timelines are followed and that the submissions are following the SEC’s strict eligibility requirements.
- Emphasize harm to investors, the SEC’s priority in any case
- Include vital documentation and evidence, such as internal documents, contracts, emails, and any available financial records.
- Be patient. Even the strongest claims can take years before an award is made.
- Cooperating with and assisting the SEC can strengthen a claim and add value.
Whistleblowers who work with legal counsel who have a better understanding of the SEC’s criteria can increase the chances of a successful submission.
The Best SEC Whistleblower Attorneys Are Experienced And Qualified
Whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced SEC counsel may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.
Silver Law Group and the Law Firm of David R. Chase work together as experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.
Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.