
SEC Awards Record Payout of Nearly $50M to Whistleblower - chmaynard
https://www.sec.gov/news/press-release/2020-126
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joering2
We should know more about this. Who was the individual? What company they
wistleblow about? These facts matter.

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2fafbbe1f54ee2c
I don't see how whistleblower identity matters as long as the information and
the validity of it is vetted by the SEC. The only use for that information I
can think of would be to retaliate, which would go against the whole principle
of having a whistleblower program in the first place.

> Whistleblowers may be eligible for an award when they voluntarily provide
> the SEC with original, timely, and credible information that leads to a
> successful enforcement action. Whistleblower awards can range from 10
> percent to 30 percent of the money collected when the monetary sanctions
> exceed $1 million.

It looks like they not only vet the information, but also provide awards based
on the results of successful enforcement. Not only that, but also

> All payments are made out of an investor protection fund established by
> Congress that is financed entirely through monetary sanctions paid to the
> SEC by securities law violators. No money has been taken or withheld from
> harmed investors to pay whistleblower awards.

The funds come from successful enforcement and harmed parties aren't paying
for it (neither are the taxpayers, given that it's essentially a "finder's
fee" on criminally-acquired funds).

As for the whistleblowed-on company, I can definitely see a case to expose
that information so that we can know who the rotten ones really are.

