2nd Circuit Upholds SEC’s Denial of Whistleblower Award
Larry Stryker petitioned the Second Circuit for review of an order of the SEC that denied his claim for a whistleblower award. He sought the award under Section 21F of the Dodd-Frank Act based on information he supplied to the SEC that it relied upon in a successful enforcement action. The SEC held that, because the information was submitted before enactment of Dodd-Frank, petitioner did not qualify for an award under Section 21F(b)(1) of the Securities Exchange Act of 1934 and related Rules 21F-(3)(a) and 21F-4(c). Concluding that the SEC’s interpretation of Section 21F was within its authority and consistent with the legislation, the Second Circuit denied Mr. Stryker’s petition.
Section 21F(f) of the Securities Exchange Act authorized the Second Circuit to review the SEC’s denial of a whistleblower award. In denying the petition the Second Circuit gave deference to the SEC’s interpretation under the Chevron test.
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