Washington, DC, February 17, 2026— The US Securities and Exchange Commission Office of the Whistleblower released the annual report to Congress as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. As mandated by the Act, financial rewards for Covered Actions must be made in an amount that is in the aggregate equal to 10% to 30% of the monetary sanctions collected. In fiscal year 2025, the Commission granted awards in 31 Covered Actions.
Statement of Sean X. McKessy, partner at Phillips and Cohen and the former first head of the SEC Office of the Whistleblower
“The SEC Whistleblower Program shows reason for cautious optimism in 2026 and beyond. In fiscal year 2025, the Commission issued awards totaling over $60 million in connection with 31 whistleblower cases and recommended awards be paid in an additional 82 cases (Preliminary Determinations) – or 113 recommendations for rewards in Covered Actions were issued in fiscal year 2025. Therefore, the dollar amount of the award claims processed in fiscal year 2025 will increase, showing the instrumental role whistleblowers continue to play in the SEC’s enforcement efforts. ”
“The Commission also made headway on the backlog of unmeritorious claims, issuing Final Orders denying awards to 275 individuals. The Office of the Whistleblower also permanently banned 5 individuals from the Whistleblower Program for repeatedly submitting award applications in bad faith and issued Preliminary Determinations recommending denials to an additional 114 individuals. The processing of non-meritorious claims shows that the Commission and the Office are actively working their way through hundreds of award applications, freeing up precious resources to consider and process meritorious award applications in 2026 and beyond.”
“Whistleblowers are the most effective way to combat fraud in the securities market, and this annual report demonstrates the SEC values and needs the input of whistleblowers, who may often be privy to insider knowledge that can aid in the Commission’s enforcement priorities.”
###
Phillips & Cohen is the most successful law firm representing whistleblowers, with recoveries from cases totaling over $13 billion and winning 26 awards for clients under Dodd-Frank whistleblower reward programs. P&C’s roster also includes the former Director of the Whistleblower Office of the Commodity Futures Trading Commission, Christopher Ehrman, the attorney with the most awards under the Dodd-Frank whistleblower awards programs, Erika Kelton, and numerous attorneys with decades of experience representing financial fraud whistleblowers.