There is a danger to doing the right thing. Timing seems to play an important role. If you are thinking of blowing the whistle to the SEC, you might be taking on a risk that is not worth it.
In a recent case, the SEC rewarded just one of four whistleblowers to a single case. The reward was $700,000. It is a big reward, but what of the three who were not rewarded? Two simply accepted that their contribution was worth nothing, even though they stuck their neck out. And because the identities of the whistleblowers are redacted on the order, there is no way of finding out what have become of them.
The lone whistleblower who was not rewarded argued against the results. SEC’s position is that the fourth whistleblower’s information did not provide anything original. Basically, this means the whistleblower was too late in providing that information. There is a market for information and speed is part of the essence.
SEC, of course, doesn’t want copycat whistleblowers, so, to dissuade people from benefiting from other people’s work, they really only consider information they did not already possess and was important to their case.
Marcus Maltempo is a Certified Anti-Money Laundering Specialist and a Certified Fraud Examiner with more than a decade of experience helping banks, law firms and clients manage investigations and regulatory responses.