The 2013 numbers are in for the Dodd-Frank whistleblower program and they are encouraging. The SEC released its 2013 Annual Report on the program earlier this week which revealed that tips – and rewards – have increased since 2012. The young whistleblower program is gaining steam and if it stays on course, it will no doubt be hugely successful in the coming years, perhaps even rivaling the success of the 150-year-old False Claim Act program.
The Report shows that tipsters are flooding in with reports of potentially fraudulent conduct. Tips went up approximately 8% in 2013, increasing from 3,001 for 2012 to 3,238 for 2013. That amounts to roughly 9 tips a day. The tips poured in from all fifty states, with the bulk coming from California, New York, Texas, and Florida. Tips also originated from the outer territories of Puerto Rico, Guam, and the US Virgin Islands. And tips from abroad were up by 25% from 2012, coming in from 55 countries, with the most originating in the UK, Canada, China, Russia and India. As in 2012, the three most common tips involved Corporate Disclosures and Financials (17.2%), Offering Fraud (17.1%), and Manipulation (16.2%).
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