Whistleblower Attorney Explains How Proposed Changes to SEC Whistleblower Program Would Undermine Deterrence
On June 29, 2018, the U.S. Securities and Exchange Commission (“SEC”) announced proposed amendments to the rules governing its successful whistleblower program. This announcement received immediate criticism from whistleblower advocates as well as two of the five SEC Commissioners who oppose the amendments.
Today, Law 360 published an Op-ed by distinguished whistleblower attorney, Stephen M. Kohn, explaining how the SEC’s proposed amendments undermine the SEC Whistleblower Program. Kohn opines that the proposed rule amendments, specifically limiting the percentage of reward in cases where a corporation is fined above $100 million, disincentivizes would be high level corporate whistleblowers.
“At the end of the day, an effective anti-corruption program can work only if telling the truth and reporting frauds is more profitable then committing the crimes. The proposed rule ignores this reality. It disincentives the most important potential whistleblowers in the securities industry and takes away the Commission’s best advertisement for promoting honesty in the markets,” said Kohn.
Read the full article: The Problem With SEC’s Plan To Cap Whistleblower Awards
