While the long-term efficacy of the bounty program offered by the SEC's Office of the Whistleblower is still unclear, as the Office enters its fourth year it is safe to say that its progress thus far has been slow. The Office was created after the SEC's repeated dismissal of valuable information that could have exposed Bernie Madoff's Ponzi scheme years before it was finally put to a stop. This very public debacle made it evident that the SEC was not equipped to handle the volume of whistleblower tips it was receiving, and a new vehicle would be needed to process tips and separate the proverbial wheat from the chaff. A product of the 2010 Dodd-Frank legislation, the Office of the Whistleblower is designed to serve this function and help the SEC 'act swiftly to protect investors from harm and bring violators to justice.'
Office of the Whistleblower: A Slow Beginning,
Emory Corp. Governance & Accountability Rev.
Available at: https://scholarlycommons.law.emory.edu/ecgar/vol1/iss1/13