SEC Enriches Fraudsters, Lawyers as Secrecy Shrouds Tips Program

An SEC whistleblower program designed to prevent another Bernie Madoff-type scandal often ignores its own rules, shields much of its work from the public, and has been a financial boon for law firms that hired former agency officials, a Bloomberg Law investigation has found.

Written into the Dodd-Frank financial reform law of 2010 and championed by Sens. Elizabeth Warren (D-Mass) and Chuck Grassley (R-Iowa), it was created to make sure tips about financial wrongdoing aren’t ignored as they were before Madoff’s $64.8 billion Ponzi scheme.

By that measure, it’s been successful: the Securities and Exchange Commission has gotten roughly …

Read more…

Leave a Reply

Your email address will not be published. Required fields are marked *