New rules mean corporate whistleblowers can get even more money as a reward from the Securities and Exchange Commission, potentially millions more—and get it faster.
While the very biggest rewards could be reduced under the new rules, they can still be staggering. In October, just weeks after adopting the new rules, the SEC awarded an anonymous whistleblower $114 million—by far the biggest award in the whistleblower program’s eight-year existence. Telling the government about corporate malfeasance can still make you rich, and some people think that’s a problem.
The Dodd-Frank law established the program, which can pay whistleblowers 10% to 30% of the amounts the SEC collects from actions it takes based on “original information” supplied by an individual. SEC fines can be huge, and so can the awards. In June, the SEC paid its then-biggest award ever, $50 million, to an individual who reported the overcharging of clients for … Read More