Despite fears of the Dodd-Frank rollbacks, the whistleblowing regime and awards scheme is still encouraging employees to speak out about wrongdoing happening in their organisation.
The New York Post reported that a financial investigator, Edward Siedle, is getting $78 million (approximately $AUD 105 million) for his role in exposing the conflicts of interest case in the JP Morgan Chase.
The publication reported that this is the highest award from the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission combined to a single whistleblower.
The report indicated that the SEC $48 million (approximately $AUD65 million) and then he was subsequently awarded $30 million (approximately $AUD 40 million) by the CFTC.
Siedle indicates that he would use the money that he has been given to continue to tackle bad actors in the financial system.
According to the SEC’s 2017 Annual Report to Congress for the Whistle Blower Program at the end of the fiscal year awarded approximately $160 million (approximately $AUD 216 million) to 46 different whistleblowers.
In March, the SEC announced what was then the highest amount that had come of the Dodd-Frank Whistleblowing program.
Two whistleblowers shred $50 million ($AUD 67 million) and a third whistleblower was awarded $ 33 million (approximately $AUD 44 million).
It yet to be seen what the whistleblowing awards will look like at the end of the fiscal year for 2018.
Whistleblower Awards System
Warren Day from ASIC has already said that Australia would not be following the award system like the one that is followed through in the US.
Some in the UK are also supporters of the awards systems. In response to a question on LinkedIn that asked whether whistleblowers should be should get financial rewards Mary Inman Partner at Constantine Cannon:
“100% Yes! Whistleblowers are US Government's no. 1 enforcement tool. Whistleblower-initiated lawsuits have returned over $56 billion to US treasury since 1986. 51 SEC whistleblowers have received over $251M in awards for exposing financial frauds in which the SEC has imposed multiple billions in penalties/fines. Financial incentives provide a soft landing for WBs and False Claims Act and SEC WB program statistics show they work!"