- Jul 16, 2010
- Reaction score
- Political Leaning
Financial reform law will reward whistle-blowers - Omaha.comWASHINGTON — The new financial reform law has what some lawyers call a secret weapon against fraud on Wall Street and in corporate America: the promise of a million-dollar jackpot to insiders who reveal an illegal scheme to the government.
Tucked in the massive bill is a provision that for the first time extends a concept long applied to government contracts to the private sector. It gives whistle-blowers a mandatory 10 percent — and as much as 30 percent — of what the government recoups in fines and settlements in financial fraud cases. These can include insider trading, false earnings reports and classic Ponzi schemes.
To claim a bounty, the whistle-blower must provide the Securities and Exchange Commission with “original information” that reveals the fraud and leads to a successful recovery.
This is brilliant! Greed fighting greed! I wonder how Wall Street is going to spin this law?