New rules offer big cash awards to whistle-blowers
Washington Post Wednesday, May 25, 2011
WASHINGTON — Blow the whistle on financial fraud, earn valuable rewards.
The SEC approved rules Wednesday that could make it highly lucrative for Wall Street whistle-blowers and other corporate insiders to alert the agency to securities violations.
The agency was acting at the behest of Congress and President Barack Obama, who mandated the rewards last year in legislation responding to the mortgage meltdown.
Under the rules, whistle-blowers will be entitled to receive 10 to 30 percent of the money they help the SEC collect through enforcement actions.
Corporations had lobbied intensely for rules that would impose constraints on whistle-blowers. But a majority of SEC commissioners rejected pleas by business groups that, before going to the SEC, whistle-blowers should be required to notify the companies they are accusing of wrongdoing and give them a chance to address the allegations.
“Today’s rules are intended to break …
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