SEC Has 6,500 Whistleblowers: PR Spin UnSpun
July 29, 2014
According to the WSJ:
6,500 people offered confidential information under the whistleblower program of the Securities and Exchange Commission. The agency set up the program in mid-2011 with hopes of eliciting dirt on corporate wrongdoers. It offers a bounty of up to 30% of penalties for any monetary sanctions the agency extracts that exceed $1 million.
If we apply statics from other whistleblower programs 74% will net a big ole zero. That’s right according to the government statistics 5,400 federal whistleblower law suits were filed from fiscal 1987 through 2010 and 74% of the time there was no financial settlements for the government or the whistleblower.
I’m gonna go out on a limb here and say there’s no way the SEC is equipped to handle 6,500 cases with any accuracy, so expect the failure rate to be much higher than 74%. If a whistleblower recovers money quickly for the government don’t expect anywhere near the 30%; because, by the government’s standards the faster the case settles the less money a whistleblower makes. That’s right if the case goes to trial and spends more taxpayer money cleaning up the government’s mess they get more of the settlement; but, if the case settles quickly spending less taxpayer money expect closer to 15%. I know what you’re saying, “But, Melayna that’s inconsistent and contradictory language to action and a trigger for The Sociopathic Business Model™.”
Assistant U.S. States Attorney promoted to the SEC said, “There are guidelines, and (the full 25%- 30%) never, almost never,” is awarded. When pressed for the guidelines the source became agitated (or not used to being challenged at work) and was “not prepared to discuss those (guidelines).” (I’ll keep checking my inbox for those “guidelines”). Not until those making the final decisions (appointed officials) become elected officials and they understand the whistleblower represents the people not the government, do we have any hope of gaining transparency or accountability. Also, a Federal Grand Jury results in an indictment 99% of the time which leads to a trial and 95-98% of the trials are successful.
It’s not about being right it about doing right by the taxpayers and until the U.S. Government understands that attorneys much like physicians (who are highly trained in their area) are not always the most business savvy as it’s not nor should it be their primary focus; however, people from the business world should be part of the SEC/DOJ helping them with negotiations and settlements or else we’ll always get what we always go: ripped off taxpayers!
And below is the full list of characteristics: