SEC proposes return to 30% awards for corporate whistleblowers
The Securities and Exchange Commission recently proposed changes to its program for dealing with corporate whistleblowers. Since the Dodd-Frank banking legislation, whistleblowers receive up to 30% of penalties the SEC collects when they exceed $1 million. The program was trimmed back during the Trump administration. New proposed rules would return the program to its former state. For one view of what should happen next, the Federal Drive with Tom Temin turned to the co-founder and CEO of the banking and markets non-profit advocacy group Better Markets, Dennis Kelleher.
Tom Temin: Mr. Kelleher, good to have you on.
Dennis Kelleher: Hi, Tom. Thanks for having me.
Tom Temin: Tell us the background here. This rule netted more than a billion dollars for whistleblowers up into the Trump administration?
Dennis Kelleher: Well, yes in fact it’s really one of the most important and wildly successful rules in all of financial and economic regulation and policymaking. Many of your listeners will probably remember hearing about the Madoff Ponzi scheme. Madoff was a guy on Wall Street who ran a Ponzi scheme that ultimately was as big as $65 billion, costing investors billions of dollars in losses. And there was a whistleblower. This is back going up to 10 years before 2008. The whistleblower kept going to the SEC saying, hey,…