In its 2018 annual report to Congress, the SEC reported that it received the largest number of whistleblower tips and paid the most in rewards in program history.
According to the report, the SEC Office of the Whistleblower (the "Office") received 5,282 tips during fiscal year 2018, an 18 percent increase over 2017. California, New York, Florida, Texas and New Jersey had the highest number of whistleblowers. The SEC also received whistleblower submissions from individuals in 72 foreign countries. The Office reported that it awarded more than $168 million in fiscal year 2018 - more than in all previous years combined.
Commentary / Kyle DeYoung
The record number of tips and dollars awarded in FY 2018 is evidence of the success of the Whistleblower Office and a reminder of how important it is to the overall enforcement program. However, the increase in the number of tips in the months following the Supreme Court's ruling in Digital Realty Trust is also a reminder of the difficulties companies face in trying to convince employees to report issues internally. The record may be evidence, as predicted by many, that the ruling is discouraging employees from reporting potential misconduct internally before going to the SEC.
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