John Doe v. Securities and Exchange Commission

In denying a whistleblower award to Petitioner, the SEC interpreted key provisions of the statutory whistleblower program created by Congress in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Dodd-Frank states that no award shall be made “to any whistleblower who is convicted of a criminal violation related to the judicial or administrative action for which the whistleblower otherwise could receive an award under this section.” 15 U.S.C. § 78u-6(c)(2)(B). According to the SEC, two violations are related if they are connected regardless of degree. In addition, the SEC interpreted the term “conviction” to include pre-judgment findings of guilt, thus assigning to it a meaning that usually attaches only when Congress expressly intends it. The questions presented by this Petition are: 1.
Does Dodd-Frank’s whistleblower award program exclude whistleblowers whose criminal conduct is only tangentially connected to the enforcement action (and related actions) and who have pleaded guilty but have not been sentenced? 2.
Are the SEC’s heavily redacted Orders Determining Whistleblower Award Claims and sealed Whistleblower Award Proceedings entitled to Chevron, Skidmore, or some other level of deference?