The Securities and Exchange Commission (SEC) cancelled a meeting in October to consider controversial changes to its whistleblower program. Clearly, the agency is reconsidering, but Stephen M. Kohn, chair of the National Whistleblower Center, predicts we won’t see any details until 2020.

Stephen M. Kohn

Kohn argues that the proposed changes would destroy the program by discouraging whistleblowers from coming forward. When asked by a writer from the Corporate Crime Reporter how he feels about possible amendments to SEC’s proposals, Kohn had this to say:

“I’m on a wait and see on the outcome. The devil is in the details. They can meet us halfway. But on some of these, halfway is a disaster. But we will fight to the end. If the outcome is bad, we will litigate it and we will take it to Congress.”

However, he did say that the postponement of the decision suggests SEC staff are listening to what the NWC has to say. Kohn his team met with them several times and brought along emails and signature from 110,000 people.

Continue Reading Don’t expect changes to SEC whistleblower program until 2020

10/21 update: On Monday, the U.S. Securities and Exchange Commission announced it is rescheduling Wednesday’s meeting on proposed changes to its whistleblower program. According to the SEC’s open meeting website, the meeting, previously scheduled for October 23rd, is “cancelled.”

Stephen M. Kohn, chair of the NWC board, issued a statement; ” We welcome the postponement of the October 23rd meeting. It is vitally important that the SEC understands all of the issues and gets this rulemaking right.”


Continue Reading Changes to SEC whistleblower rules would “destroy the program”

SEC-Building-DCThe Securities and Exchange Commission’s (SEC) recently published its annual report on the SEC Whistleblower program. According to the report, in 2018 the SEC paid the largest amount of whistleblower awards in the program’s history, with payouts totaling $168 million. This year the SEC whistleblower program also gave its largest whistleblower award to date, $84 million. Many of those receiving the reward were company outsiders and non-U.S. residents.
Continue Reading SEC Whistleblower Program Pays Whistleblowers a Record $168 Million in 2018