The Securities and Exchange Commission’s Trump administration-long antipathy for the very idea of whistleblowing has softened fairly a bit under quarantine, however it has not utterly evaporated. Take one among Jay Clayton’s many last-minute efforts, a muddled rewriting of the award rules to, well, muddle them. Under these pointers, the actually large awards—these in extra of $5 million that the SEC so proudly proclaims in breathless press releases—don’t get the presumption of a 30% reduce that smaller payouts get. Instead, they get some additional evaluation of the “more deeply positive and negative factors.” And even when there aren’t any of the latter, there’s no promise that the turncoat, er, whistleblower will get all that after would have been coming to him.
Now, we don’t know if the brand new process was used to find out the most recent award introduced, a whopping $114 million—greater than twice as excessive as the previous record. We do know that there don’t sound like there have been any “negative factors.” Beyond that, issues are, well, muddled: Is the $114 million 30% of a $380 million nice? 10% of a $1.14 billion sanction? Who is aware of? The new guidelines require no such readability.
The $114 million award consists of an roughly $52 million award in reference to the SEC case and an roughly $62 million award arising out of the related actions by one other company….
“The actions of the whistleblower awarded today were extraordinary,” added Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “After repeatedly reporting concerns internally, and despite personal and professional hardships, the whistleblower alerted the SEC and the other agency of the wrongdoing and provided substantial, ongoing assistance that proved critical to the success of the actions….”
As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.”
Or point out what precisely Jay Clayton is doing.
SEC Issues Record $114 Million Whistleblower Award [press release]