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New SEC whistleblower office receiving better financial fraud tip-offs, Commissioner says

So far, so good was the message behind Securities and Exchange Commissioner Luis Aguilar’s assessment of the agency’s new whistleblower program, designed in response to the 2008 financial crisis to curb widespread financial fraud. Speaking to a panel of enforcement officials Thursday, Mr. Aguilar said that the SEC’s whistleblower office, established by the Dodd-Frank Act in 2010, has received nearly 3,000 tips from the U.S. and 45 foreign countries. But it’s not just the quantity of information pouring into the whistleblower office, it’s the quality as well. Mr. Aguilar said the incentives to report fraud and other wrongdoing have made ... Read More

SEC awards first whistleblower under new fraud-busting law

The Securities and Exchange Commission (SEC) awarded its first payout under a new whistleblower program to an individual who provided the regulatory agency with information that helped expose an active Ponzi scheme. The whistleblower received $50,000 for handing over documents that provided specific, credible, and timely information to the SEC, which prompted the agency to take enforcement action against the offending company. In awarding the informant, the SEC chose to pay the maximum percentage allowable under the law – 30 percent of $150,000 it has so far recovered in the case. Additional court-ordered sanctions against the company amount to more ... Read More