Skip to main content

SEC To Offer Whistleblowers A Shiny Nickel

It’s also considering a proposal to give $100 gift cards to those who keep their mouths shut and the regulator’s afternoons free.
  • Author:
  • Updated:
Enjoy!! By The original uploader was Hephaestos at English Wikipedia (Transferred from en.wikipedia to Commons.) [Public domain], via Wikimedia Commons

Enjoy!! By The original uploader was Hephaestos at English Wikipedia (Transferred from en.wikipedia to Commons.) [Public domain], via Wikimedia Commons

Let’s be honest here: Whistleblower claims are a real pain in the ass for the SEC. There are an awful lot of them, and they require an awful lot of work, and most of them go nowhere. Oh, and while we’re being honest, the SEC just doesn’t really feel like doingmuch work these days. I mean, summer’s sort of over but it’s still kinda hot and muggy, especially in D.C., and Thanksgiving’s only 64 days away, and then it’s basically already Christmas. So like, maybe lay off a bit? Also, the boss says “snitches end up in ditches” or whatever. So, sure, blow the whistle if you really want to, but don’t expect more than like, 50 bucks from us. Cool?

The SEC’s proposal entails giving its whistleblower office discretion to limit awards in the biggest cases, when the agency collects penalties of $100 million or more, to a level it would see as “reasonably necessary….”

“Capping awards would all but ensure that the elephant never walks through the [SEC’s] doors, only rabbits and the occasional zebra,” wrote Harry Markopolos, a financial fraud investigator well-known for exposing the Ponzi scheme perpetrated by Bernie Madoff.

See, you understand, guy who embarrassed the hell out of us once.

“This program should always aim high, not low or average. That was how it was designed and it is how it should remain.”

TL;DR. Plus the comment period ended yesterday, and we’re all taking a long weekend to Ocean City.

SEC Proposal to Limit Big Whistleblower Awards Draws Criticism [WSJ]


Zephyris at the English language Wikipedia [GFDL or CC-BY-SA-3.0], via Wikimedia Commons

Guy Who Wrote Book On SEC Whistleblower Program Available For Tutoring

You too can make millions from your immoral bosses.

(Getty Images)

Whistleblowers Still Acting Like The SEC Cares

These people are not taking a hint.

SEC Burns Whistleblower In The Most SEC Way Possible

In recent years, the Securities and Exchange Commission has had its share a fuck-ups come to light. The regulator took a pass on heeding the warning signals by Bernie Madoff himself that he was running a Ponzi scheme, it chose to go after David Einhorn rather than Allied Capital when the hedge fund manager suggested all was not right at the company, and yesterday, it was announced that the Commission is suing Egan-Jones for lying about having rated 150 ABS bonds on an SEC application four years ago (in reality it had rated zero), information that could have been fact-checked at the time but was not because there were new clips on,, and to watch. Today the team scored a new victory when it outed an informant. Federal securities regulators, in a sensitive breach, inadvertently revealed the identity of a whistleblower during a probe of a firm that ran a stock trading platform. The gaffe by the Securities and Exchange Commission occurred during an investigation of Pipeline Trading Systems LLC when an SEC lawyer showed an executive who was being questioned a notebook from the whistleblower filled with jottings about trades, calls and meetings. The executive says he recognized the handwriting. Pipeline, which didn't admit or deny the allegations, was the subject of a page-one Wall Street Journal article earlier this month. The article didn't name the whistleblower, but he has now agreed to be publicly identified. He is Peter C. Earle, 41, a former employee of a Pipeline trading affiliate. Mr. Earle said he was "disappointed" the SEC took steps in its probe that ended up disclosing his identity to Pipeline. The SEC confirmed showing the notebook to an executive of the business it was investigating. SEC officials said there is always a risk a whistleblower's identity might be disclosed during an investigation, but its practice has been to avoid unnecessarily revealing an informant's identity. The person shown the notebook (in a November 2010 SEC interview), Gordon Henderson, was the head of Pipeline's trading affiliate, Milstream Strategy Group. He said in an interview that he previously suspected Mr. Earle was an SEC informant. Mr. Henderson's desk was near Mr. Earle's in Milstream's New York office, and he said he recognized Mr. Earle's handwriting in the notebook. Related: "Mr. Earle said he made other internal complaints about trading, and was fired on April 3, 2009. Mr. Henderson said the reasons for dismissal included poor performance and a belief Mr. Earle was having an affair with the wife of another Milstream trader at the time. Mr. Earle denied both allegations, calling the notion of poor performance 'ridiculous.'" Source's Cover Blown By SEC [SEC]

(Getty Images)

Jay Clayton Making Sure Next SEC Chair Doesn’t Have To Pay As Much To Whistleblowers As He Has

He’s working hard to make life hard on tattletales right until the end.

Dad, what was "General Electric"? And why are we in Schenectady?

Madoff Whistleblower Trying To Kill GE, May Have To Kill GE CEO

When you threaten Harry Markopolos, Larry Culp, expect a disproportionate response.