In 2016, the Securities and Exchange Commission opened its doors to the professional whistleblower when it first granted a whistleblower award to a company outsider. It’s becoming more lucrative.
Last week the Commodity Futures Trading Commission announced an award of approximately $30 million to a whistleblower who voluntarily provided key original information that led to a successful enforcement action. Previously, the highest award amount paid to a CFTC whistleblower was in March 2016 of more than $10 million (see CFTC Press Release 7351-16 CFTC Announces Whistleblower Award of More Than $10 Million.)
The SEC has preliminarily approved a $48 million payout in the same matter.
Unlike many whistleblowers, the recipient of those award came forward. Edward Siedle is a former lawyer for the Securities and Exchange Commission who has turned forensic investigator.
The award comes from a $267 million settlement between JPMorgan and the SEC. In a parallel action, JPMorgan Chase Bank agreed to pay an additional $40 million penalty to the U.S. Commodity Futures Trading Commission. The bank was investigated for steering high-net-worth clients toward its own proprietary investment funds that could cost more rather than those managed by other institutions. OF course, that could have been (maybe) addressed in a disclosure to clients.
Sources:
- The Rise of the Professional Whistleblower
- Could Whistleblowing Be The New Short-Selling?
- Feds award JPMorgan Chase whistleblower a record $30M by Kevin Dugan
- Whistleblower gets record $30M for exposing JPMorgan scam by Anthonty Noto
- Press Release: CFTC Announces Its Largest Ever Whistleblower Award of Approximately $30 Million
- Welcome To The Whistleblower Winner’s Circle by Edward Siedle
- J.P. Morgan to Pay $267 Million for Disclosure Failures
