Benefits Of SEC Whistleblower Program

When the SEC Whistleblower Program was initiated, no one really knew how well it would work and how much it would actually deter people from trying to cheat the system. Insider trading can affect more than just the companies who are being cheated, everyone who invests money on the stock market will suffer in higher maintenance fees down the road. Each time people take advantage of scams and cheat the system, the only way to recover the monies is to charge higher fees to those who are already invested in the market. Here are just a few of the benefits of the sec whistleblower program.

Huge Financial Deterrent

When average traders are no longer afraid of being threatened by their bosses to keep quiet, the tables get turned on those cheating the system. No longer will a company tell employees to turn a blind eye for fear of losing their jobs, when they have the ability to report the wrongdoers without any consequences. These tips can be anonymous and protect those who are in fear of losing their jobs for speaking out against their bosses.

Huge Financial Reward

One of the reasons many people are now hesitant to cheat the system is because they realize that those who file reports are entitled to a huge financial reward if their tip results in a conviction. Companies are worried that if they slip up and an employee turns them in, they not only will face jail time, they face huge penalties and the loss of their job. The whistleblower can receive up to 10% of the monies recovered.