How Non-U.S. Citizens Can Participate in U.S. Whistleblower Reward Programs
The Securities and Exchange Commission awarded $ 114 million to an anonymous whistleblower who alerted the government to misconduct in the stock markets and provided “emergency” assistance in the investigation.
The size of the payment exceeds the previous record of the SEC encouragement more than twice.
«I hope that this record-breaking award will motivate people to come out of the shadows with information about possible violations of legislation on the securities market.», – said Jane norberg (Jane Norberg), head of department SEC revelations.
The huge reward should also serve as a loud warning to corporate America. It is known that initially the informant reported the fact of violation within the organization itself. Without waiting for any reaction, he turned to the SEC.
«I hope the business has learned a lesson from this story. Whistleblower reports need to be taken seriously», – added Norberg.
This scenario is far from unique, she said. Whistleblowers are often employees who cannot live with the fact that they see the violations taking place in the company.
The types of violations that whistleblowers helped the SEC uncover are vast, from Ponzi schemes and insider trading to market manipulation and bribery..
«Their testimony has a huge impact on our enforcement program» – said Norberg.
The SEC carefully conceals the identities of whistleblowers. It is likely that the general public will never know who received the record $ 114 million prize and what kind of information such payments followed..
«It is very serious. People need to be sure they will be safe working with us», – note in the SEC.
Stephen cohn (Stephen Kohn), chairman of the National Whistleblower Center (NWC), welcomed the $ 114 million prize.
«This award changes our entire culture. It encourages people to go forward and stop crime.. It is also a call for those involved in fraud.. They must understand that there is a high probability that they will be handed over.», – he said.
In recent years, whistleblower activities have become particularly lucrative..
SEC issued 39 individual whistleblower awards totaling approximately $ 175 million during the past fiscal year ending September. This is more than in any other year since the agency’s whistleblower office opened in 2011.
«When we first started, we had a very small office.. At the start of the program, we wondered if it would be successful», – said Norberg.
Since its first payment in 2012, the SEC has awarded a total of $ 676 million to 108 individuals. Bonuses are paid from a pool of funds financed solely by fines collected by the SEC and not by taxpayers.
Whistleblower program helps expose shady activities by creating a lucrative financial incentive for employees and investors who might otherwise remain silent.
Bonuses range from 10% to 30% of fines imposed by the SEC that are the result of whistleblowers.