The SEC recently declined to pay a whistleblower award to a claimant that sought the SEC’s review of its stance on payouts stemming from information provided prior to the Dodd-Frank Act’s enactment in 2010.
In an SEC Order, the claimant provided whistleblower information to the SEC in 2007, three years before the Dodd-Frank Act. According to Rule 21F-4(b)(1)(iv), all whistleblower payouts must be based on information provided to the SEC after the enactment of the law on July 21, 2010.
The Commission relied upon a 2015 Second Circuit decision that sided with the SEC in its refusal to award a whistleblower bounty for information provided prior to 2010. The Second Circuit held that the whistleblower was ineligible for an award because the tip was provided prior to the Dodd-Frank Act