Awards, Legal Protection Incentivizing More Whistleblowers, SEC Reports
November 19, 2013
Jordan A. Thomas lauds the success of the SEC's Whistleblower Program
In fiscal year 2013, the SEC has paid out $15 million to whistleblowers with information on securities fraud that lead to successful enforcement. The number of tips from whistleblowers in and outside of the US continues to grow each year.
"Given the global nature of the financial markets, it makes sense that so many complaints are coming from abroad. This shows that without a lot of advertisement, the word has gotten out about the program."
"Some people thought that after Sarbanes-Oxley financial fraud would be reduced, but it is the number one thing reported to the SEC. Financial fraud is a persistent challenge…The SEC's program is gaining momentum. It is likely to have a significant impact on investor protection and the individuals and companies that don't appreciate this will pay the price down the line."
(A print version of this article appears in the January 2014 issue of Corporate Secretary.)