The SEC Whistleblower Program has become one of the most effective tools for uncovering corporate fraud and protecting investors. Since its inception under the Dodd-Frank Act, the program has awarded over $2.2 billion to whistleblowers whose tips led to successful enforcement actions.
But navigating the whistleblower process is not always straightforward. For those considering submitting a tip, partnering with an experienced attorney can make all the difference.
Here are five reasons why legal counsel may be beneficial to your whistleblower journey:
1) Anonymity Requires Legal Representation
One of the most powerful features of the SEC Whistleblower Program is the ability to report anonymously. This protection is especially critical for whistleblowers concerned about retaliation or reputational harm.
However, anonymity is only available if the whistleblower is represented by an attorney who submits the tip on their behalf. Without legal counsel, whistleblowers must disclose their identity to the SEC. While all tips are confidential, filing anonymously provides an additional buffer against exposure, while still allowing for the possibility of a financial reward.
2) An SEC Whistleblower Attorney Can Help You Protect Yourself Against Retaliation
While many whistleblowers report their concerns anonymously to the SEC, some choose to also report their concerns to their company. Whistleblowers who report securities violations internally face real risks of retaliation. Fortunately, the Dodd-Frank Act provides robust protections—but only under specific conditions.
To be shielded by Dodd-Frank’s anti-retaliation provisions, a whistleblower must report directly to the SEC. If the initial disclosure is made internally, those protections may not apply, potentially leaving the whistleblower exposed.
This is where experienced counsel becomes essential. Attorneys can help structure internal disclosures to ensure they fall within the scope of federal protections. They also understand how overlapping laws—like Sarbanes-Oxley and various state employment statutes—can offer additional remedies.
For example, while Dodd-Frank allows whistleblowers to sue in federal court for double back pay, reinstatement, and attorneys’ fees, some claims may be diverted to private arbitration, which often favors employers. Sarbanes-Oxley claims, by contrast, are not subject to arbitration. Experienced attorneys know how to navigate this complex legal maze.
3) The SEC Is Looking for Certain Types of Securities Fraud. Experienced Counsel Know How to Properly Position a Case
The SEC requires whistleblower tips to be “specific, credible, and timely” to trigger an investigation or contribute meaningfully to an ongoing one. But not all tips are created equal.
The SEC prioritizes cases involving significant investor harm, scams that go after vulnerable populations (like religious or affinity groups or the elderly), and cases that threaten the broader financial system. The current administration also has specific priorities, like foreign companies that target US investors in unscrupulous ways, or matters that potential implicate transnational cartels.
Experienced whistleblower attorneys understand these enforcement priorities and know how to frame a submission to highlight the most compelling aspects of a case. They help whistleblowers organize facts, identify relevant legal violations, and present the information in a way that aligns with the SEC’s standards. This strategic positioning can be the difference between a tip that triggers an investigation and one that is overlooked.
4) Attorneys Help Maximize Award Eligibility
Whistleblower awards range from 10% to 30% of the monetary sanctions collected in cases where the SEC recovers over $1 million. But not every tip qualifies.
The SEC considers factors such as the significance of the information, the level of assistance provided, whether the whistleblower first reported internally, and any delay in reporting. An experienced attorney can showcase the value of your assistance and explain why any weaknesses in your award application should not impact the award amount.
From the onset of a matter, SEC whistleblower attorneys focus on strategic positioning to maximize the potential for an award—something especially important given the SEC’s trend toward stricter interpretations of its rules.
For example, as outlined in a recent order denying joint whistleblowers an award, the SEC appears to be moving away from looser interpretations of its rules to favor awards, and instead requiring whistleblowers to strictly follow the statutory and regulatory requirements to qualify for an award. That order may also signal a shift away from the SEC’s historical practice of waiving procedural requirements to pay awards even when whistleblowers don’t technically comply with the statutory requirements. This development means that following every rule from the start may be the difference between getting an award and getting nothing.
Attorneys can help you understand these criteria and position your case to maximize your potential award. They also ensure that deadlines are met and that your claim is properly documented.
5) An Attorney Can Focus on Your Case So You Can Focus on Your Life
The SEC Whistleblower process is not a sprint—it’s a multi-year legal and investigative marathon. From the initial submission to the final award determination, cases can span years, often with little visibility into progress.
For whistleblowers, this uncertainty can become all-consuming. But it doesn’t have to be. Experienced SEC whistleblower attorneys are equipped to manage the entire process, from preparing the initial tip to navigating complex procedural requirements and responding to SEC inquiries.
By entrusting your case to a legal team, you free yourself to focus on what matters most: your career, your family, and your well-being. Attorneys serve as strategic partners and protectors, ensuring your rights are preserved while you move forward.
The SEC views whistleblowers as essential partners in enforcement, but that partnership doesn’t require you to put your life on hold. With the right counsel, you can contribute meaningfully and then step back, knowing your case is in capable hands.
If you’re considering submitting a whistleblower tip to the SEC or DOJ, the attorneys at Outten & Golden are ready to help. As Co-Chairs of the firm’s Whistleblower & Retaliation Practice Group, Tammy Marzigliano and Dave Jochnowitz have decades of experience guiding clients through complex whistleblower matters—from anonymous filings to award advocacy and retaliation protection.
To learn more or to schedule a confidential consultation, click “Contact Us” at the top of this page.
