

S.E.C. Pays Out First Whistle-Blower Reward - JumpCrisscross
http://dealbook.nytimes.com/2012/08/21/s-e-c-pays-out-first-whistle-blower-reward/?nl=business&emc=edit_dlbkam_20120822

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lifeisstillgood
This is both a good and bad turn of events.

Good, because we want to send anyone in the financial field to jail and this
will satisfy our blood lust. Oh sorry I meant this will send more criminals to
jail.

But, it always pays to be the first one to rat out your friends - you can make
a deal. The second one to rat out, generally has nothing left to make a deal
with.

However, being able to rat out your friends means you were in on it in the
first place. And the de facto requirement that the tip must be high-quality
(read actionable evidence) means you needed to be recording everything you
were doing. So, continue with the frauds, but keep really good records and
know the number of the SEC.

