Yes, we need whistleblower rewards
Congress could not have been any clearer in its statutory design. Nor the SEC any more outspoken in its revitalized approach to government enforcement. Whistleblower rewards work. Even more, they are an indispensable component of the modern regulatory scheme. This is borne out in the unmistakable success of the Dodd-Frank and False Claims Act (FCA) whistleblower programs to which financial incentives are inextricably linked.
Yet a recent post on the FCPA Blog questioned whether whistleblower reward programs are really a good idea. Even some of America’s more enlightened allies are having trouble appreciating the critical role of the whistleblower bounty. What the naysayers seem to have in common is a basic misapprehension of how well whistleblower rewards have worked. Not to mention the hurdles whistleblowers face and sacrifices they make in standing up to fraud and misconduct. Click here to read the full article.