{"id":278,"date":"2010-08-08T13:13:42","date_gmt":"2010-08-08T13:13:42","guid":{"rendered":"http:\/\/www.whistleblowerlawyerblog.com\/2010\/08\/does_sec_whistleblower_reward_1.html"},"modified":"2021-06-11T17:47:52","modified_gmt":"2021-06-11T21:47:52","slug":"does_sec_whistleblower_reward_1","status":"publish","type":"post","link":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/","title":{"rendered":"Does SEC Whistleblower Reward of $1 Million Signal A New Attitude Toward Wall Street Whistleblowing?"},"content":{"rendered":"

Only days after the new financial reform law created the first potentially meaningful awards for whistleblowers reporting securities and commodities violations and abuses<\/a>, the SEC may have signaled a new attitude toward encouraging whistleblowers.<\/p>\n

The SEC recently announced its first million dollar award for a whistleblower’s report of information <\/a>about insider trading involving hedge fund adviser Pequot Capital Management, Inc., its chief executive, Arthur J. Samberg, and David E. Zilkha, a Microsoft employee.<\/p>\n

Although $1 million may not sound like much when compared to the losses caused by the Madoffs of the world, it is a dramatic improvement over what the SEC had done before. <\/p>\n

In following the development of the new SEC Whistleblower Program<\/a>, we previously discussed the Inspector General’s summary <\/a>of how, over the past eleven years, the SEC had paid a total of less than $160,000 to reward whistleblowers under the “old” SEC bounty program for whistleblowers. <\/a> The IG reported:<\/p>\n

The SEC bounty program has made very few payments to whistleblowers since its inception and received a relatively small number of bounty applications. As a result, the program’s success has been minimal and its existence is practically unknown.
\nSince the inception of the SEC bounty program in 1989, the SEC has paid a total of $159,537 to five claimants as detailed in Table 1 below.<\/p>\n

Table 1: Bounty Payments to Whistleblowers Bounty Claimant Year Bounty Amount 1) Claimant 1 1989 $3,500 2) Claimant 2 2001 $18,152 3) Claimant 3 2002 $29,079 4) Claimant 4 2005 $17,500 4) Claimant 4 2006 $29,920 4) Claimant 4 2009 $55,220 5) Claimant 5 2007 $6,166
\nTotal $159,537
\nSource: OIG Generated<\/em><\/p>\n

Just as another Inspector General’s report in 2006 <\/a>set the stage for the successful new IRS Whistleblower Program<\/a> that is attracting many reports of even billions in tax liability, let’s hope this Inspector General’s report has motivated the SEC to make full use of the opportunity to build a meaningful whistleblower program. We are already getting calls from potential Wall Street whistleblowers wishing to take advantage of it, and it could be a rewarding process–depending on how well the SEC seizes the opportunity. <\/p>\n

The SEC’s recent announcement of the $1 million reward is reprinted below:
\n Continue reading \u2192<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Only days after the new financial reform law created the first potentially meaningful awards for whistleblowers reporting securities and commodities violations and abuses, the SEC may have signaled a new attitude toward encouraging whistleblowers. The SEC recently announced its first million dollar award for a whistleblower’s report of information about insider trading involving hedge fund […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-278","post","type-post","status-publish","format-standard","hentry","category-sec-whistleblower-program-cftc-whistleblower-program"],"yoast_head":"\nDoes SEC Whistleblower Reward of $1 Million Signal A New Attitude Toward Wall Street Whistleblowing? — Whistleblower Lawyer Blog — August 8, 2010<\/title>\n<meta name=\"description\" content=\"Only days after the new financial reform law created the first potentially meaningful awards for whistleblowers reporting securities and commodities — August 8, 2010\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Does SEC Whistleblower Reward of $1 Million Signal A New Attitude Toward Wall Street Whistleblowing? — Whistleblower Lawyer Blog — August 8, 2010\" \/>\n<meta name=\"twitter:description\" content=\"Only days after the new financial reform law created the first potentially meaningful awards for whistleblowers reporting securities and commodities — August 8, 2010\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michael Sullivan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Does SEC Whistleblower Reward of $1 Million Signal A New Attitude Toward Wall Street Whistleblowing? — Whistleblower Lawyer Blog — August 8, 2010","description":"Only days after the new financial reform law created the first potentially meaningful awards for whistleblowers reporting securities and commodities — August 8, 2010","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/","twitter_card":"summary_large_image","twitter_title":"Does SEC Whistleblower Reward of $1 Million Signal A New Attitude Toward Wall Street Whistleblowing? — Whistleblower Lawyer Blog — August 8, 2010","twitter_description":"Only days after the new financial reform law created the first potentially meaningful awards for whistleblowers reporting securities and commodities — August 8, 2010","twitter_misc":{"Written by":"Michael Sullivan","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/#article","isPartOf":{"@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/"},"author":{"name":"Michael Sullivan","@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/#\/schema\/person\/06cb979e5d74ec7f83f73b757da4331f"},"headline":"Does SEC Whistleblower Reward of $1 Million Signal A New Attitude Toward Wall Street Whistleblowing?","datePublished":"2010-08-08T13:13:42+00:00","dateModified":"2021-06-11T21:47:52+00:00","mainEntityOfPage":{"@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/"},"wordCount":844,"articleSection":["SEC Whistleblower Program & CFTC Whistleblower Program"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/","url":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/","name":"Does SEC Whistleblower Reward of $1 Million Signal A New Attitude Toward Wall Street Whistleblowing? — Whistleblower Lawyer Blog — August 8, 2010","isPartOf":{"@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/#website"},"datePublished":"2010-08-08T13:13:42+00:00","dateModified":"2021-06-11T21:47:52+00:00","author":{"@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/#\/schema\/person\/06cb979e5d74ec7f83f73b757da4331f"},"description":"Only days after the new financial reform law created the first potentially meaningful awards for whistleblowers reporting securities and commodities — August 8, 2010","breadcrumb":{"@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/does_sec_whistleblower_reward_1\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/"},{"@type":"ListItem","position":2,"name":"Does SEC Whistleblower Reward of $1 Million Signal A New Attitude Toward Wall Street Whistleblowing?"}]},{"@type":"WebSite","@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/#website","url":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/","name":"Whistleblower Lawyer Blog","description":"Published by Whistleblower Attorneys \u2014 Finch McCranie, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/#\/schema\/person\/06cb979e5d74ec7f83f73b757da4331f","name":"Michael Sullivan","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/1c20f28ef8779909ce4423e28badc00a489c680349138c20442a37fb45a0e8cf?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/1c20f28ef8779909ce4423e28badc00a489c680349138c20442a37fb45a0e8cf?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1c20f28ef8779909ce4423e28badc00a489c680349138c20442a37fb45a0e8cf?s=96&d=mm&r=g","caption":"Michael Sullivan"},"sameAs":["https:\/\/www.finchmccranie.com\/michael-a-sullivan.html"]}]}},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/wp-json\/wp\/v2\/posts\/278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/wp-json\/wp\/v2\/comments?post=278"}],"version-history":[{"count":1,"href":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/wp-json\/wp\/v2\/posts\/278\/revisions"}],"predecessor-version":[{"id":1992,"href":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/wp-json\/wp\/v2\/posts\/278\/revisions\/1992"}],"wp:attachment":[{"href":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/wp-json\/wp\/v2\/media?parent=278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/wp-json\/wp\/v2\/categories?post=278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/wp-json\/wp\/v2\/tags?post=278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}