Whistleblower awards explained

The SEC whistleblower program

Congress set up the SEC program in 15 U.S.C. 78u-6 ¹. An award is available when original information leads to a covered action with "monetary sanctions exceeding $1,000,000" ¹. The total award must be "not less than 10 percent" and "not more than 30 percent" of the amounts collected ¹. The SEC says the program was "established by Congress to incentivize whistleblowers to report specific, timely and credible information" ³.

The statute bars the SEC from disclosing information that could reasonably be expected to reveal a whistleblower's identity, with listed exceptions ¹. A whistleblower who faces retaliation can obtain reinstatement and "2 times the amount of back pay otherwise owed to the individual, with interest" ¹.

How the SEC sets the amount

SEC rule 240.21F-6 lists factors that may raise or lower an award within the range ².

Program totals

The SEC program page says "As of the end of fiscal year 2023, a total of almost $2 billion had been awarded to nearly 400 whistleblowers" ³. The SEC Office of the Whistleblower reported to Congress on 11 February 2026 that it "awarded a total of more than $60 million to 48 individual whistleblowers" in fiscal year 2025 and received "approximately 27,000" tips ⁴.

False Claims Act qui tam cases

Under 31 U.S.C. 3730(b)(1), "A person may bring a civil action for a violation of section 3729 for the person and for the United States Government" ⁵. The complaint "shall remain under seal for at least 60 days" so the government can decide whether to take over ⁵. The person who files is called the relator in case captions ^6,7.

If the government proceeds, the relator receives "at least 15 percent but not more than 25 percent" of the proceeds ⁵. If it does not, the share is "not less than 25 percent and not more than 30 percent" ⁵. A court may reduce the share of a person who planned and initiated the violation ⁵. Section 3730(h) gives relief to employees, contractors and agents who face retaliation ⁵.

DOJ's corporate whistleblower pilot

The Criminal Division's Corporate Whistleblower Awards Pilot Program pays for "original and truthful information about corporate misconduct" that results in a successful forfeiture ⁸. Covered areas include foreign and domestic corruption by companies, federal health care offenses, fraud against the United States, trade and customs fraud, and sanctions offences ⁸. DOJ says "A whistleblower award is made in the Department's sole discretion" ⁸. A company that self-reports within 120 days of an internal whistleblower report, before DOJ contacts it, may still be eligible for a declination ⁸.

Examples from case records

In both cases the whistleblower's share came from a civil settlement in which there was no determination of liability ^6,7.

• Securiport and Alex Stewart International (2026): the US$1,816,943 Paycheck Protection Program settlement came in United States ex rel. Verity Investigations, LLC v. Securiport Limited Liability Company. The release says "The whistleblower received 10% of the government's recovery" and that the claims "are allegations only" ⁶.
• Pfizer, on behalf of its subsidiary Biohaven (24 January 2025): the US$59,746,277 settlement resolved a qui tam case by former sales representative Patricia Frattasio. DOJ said she "will receive approximately $8.4 million" as her share of the federal recovery and that "there has been no determination of liability" ⁷.