Legal Law

Is the File Whistleblower Award a lavish reward or an essential screw job?

The Trump Administration's antipathy by the Securities and Exchange Commission against the idea of ​​whistleblowing has subsided a lot under quarantine, but has not completely evaporated. Take one of Jay Clayton's many last minute efforts to mess up a jumbled rewrite of the pricing rules to mess it up. Under these guidelines, the really big awards – the more than $ 5 million the SEC so proudly announces in breathless press releases – don't get the guess of a 30 percent cut that gets smaller payouts. Instead, they receive an additional analysis of the “deeper positive and negative factors”. And even if there aren't the latter, there is no guarantee that the turncoat, um, whistleblower will get everything that would once have come to them.

Now, we don't know if the new process was used to determine the last award announced, a whopping $ 114 million – more than double the previous record. We know that there are no “negative factors”. Additionally, things are mixed up: is the $ 114 million 30% of a $ 380 million fine? 10% of a $ 1.14 billion penalty? Who knows? The new rules do not require such clarity.

The $ 114 million award consists of an approximately $ 52 million award related to the SEC case and an approximately $ 62 million related award associated measures by another agency.

"The whistleblower's actions awarded today were exceptional," added Jane Norberg, director of the SEC's whistleblower office. "After repeatedly reporting concerns internally, despite personal and professional difficulties, the whistleblower alerted the SEC and the rest of the world to the misconduct and provided extensive ongoing support that was critical to the success of the measures."

As set out in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower's identity. "

Or indicate what exactly Jay Clayton is doing.

SEC Issues Record Whistleblower Prize Of $ 114 Million [Press Release]

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