Jonathan Sack Discusses Whistleblower Anonymity and the First SEC Whistleblower Payment Under Dodd-Frank

October 30, 2012

Morvillo Abramowitz Partner Jonathan Sack was quoted in “SEC Makes First Whistleblower Payment Under Dodd-Frank Program” (November 2012 issue Inside Counsel) which discusses the SEC’s first payout under the whistleblower program authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Sack, in commenting on the SEC's efforts to follow the rule of the law with respect to protecting the anonymity of whistleblowers noted, "By maintaining confidentiality, the SEC is saying that it will take steps to protect whistleblowers and won’t just expose them to harsh scrutiny.” Commenting on the SEC's announcement that it rejected a claim from another whistleblower seeking an award in the same matter because the information that person provided did not lead to or significantly contribute to the action, Sack noted, “The SEC is trying to communicate to the legal public and the whistleblowing public how the system will work—that the system is discriminating, and that it will involve drawing distinctions between whistleblowers. The SEC wants to show not just that it’s eagerly handling whistleblower information and bringing enforcement actions based on that information, but that it’s doing it in a very careful and appropriate way and is drawing appropriate lines.” Click here to read the full article.