Who can be compensated as an SEC whistleblower?

There are three main eligibility criteria for SEC whistleblowers.

First, a whistleblower must have “original information.” To qualify as “original,” information must be based on the whistleblower’s independent knowledge or analysis, and not already known to the government or available in public media reports. The SEC permits whistleblowers to submit claims based on independent analysis of public data, provided such analysis uncovers important insights about possible securities laws violations not evident from publicly available information.

Second, the whistleblower must voluntarily report the information to the SEC. Information provided in response to a subpoena or investigative request will not qualify for a whistleblower award. The SEC permits individuals to report information internally to their employers first. If a whistleblower reports the same information to the SEC within 120 days of reporting internally, that individual will still be entitled to an award based on the information. That whistleblower may also receive credit for the results of any investigation the company undertakes and reports to the SEC. 

Third, the information must relate to a violation of the securities laws and lead to a successful enforcement action resulting in monetary sanctions of at least $1 million.

There are no citizenship requirements for whistleblowers. Nor do whistleblowers have to work for the organization on which they are blowing the whistle.

Certain individuals, however, are excluded from whistleblower eligibility. For example, in contrast to some other whistleblower programs, SEC regulations do not permit payment of a whistleblower award to anyone convicted of a criminal violation related to the misconduct reported. Nor can government employees acting within the scope of their job duties obtain an award.

Other potential whistleblowers face heightened eligibility requirements that can change depending on the circumstances. That group includes a company’s officers, directors, and other employees directly responsible for corporate compliance, such as attorneys, accountants, and auditors.

To learn more about the SEC whistleblower program and other similar programs, go to www.mololamken.com and follow us on LinkedIn. “Brilliant lawyers with courtroom savvy” — Benchmark Litigation. Copyright MoloLamken LLP 2025.