Madoff Tipster Has Big Concerns About SEC's Whistleblower Proposal

Source: National Law Journal

In 2009, with the wounds of Bernie Madoff’s financial fraud still fresh, a forensic accountant named Harry Markopolos told a congressional committee that he “gift wrapped and delivered” damning evidence of the scheme to securities regulators—only to be ignored.

The U.S. Securities and Exchange Commission soon would go on to create a whistleblower program, part of the Dodd-Frank Wall Street reform overhaul. Markopolos had recommended such a program, one that has generated tens of millions of dollars in award bounty for tipsters.

A decade later, Markopolos now worries that proposed changes to the SEC’s whistleblower program could undercut the agency’s efforts to attract tipsters cut in his mold: outside analysts who pull together a puzzle of publicly available information to give regulators an eye-opening picture of fraud.

Read more: https://www.law.com/nationallawjournal/2018/09/18/madoff-tipster-has-some-big-concerns-about-secs-whistleblower-proposal/