This $800 million whistleblower program is losing its top cop
April 16, 2021. Summarized by summa-bot.
Compression ratio: 18.3%. 1 min read.
The head of the Securities and Exchange Commission's highly-successful whistleblower program is stepping down at a delicate moment for the market watchdog.
Jane Norberg is leaving the SEC on Friday, after presiding over a four-and-half-year period during which the whistleblower office handed out a staggering $702 million in awards to 114 individuals who aided the agency's investigations.
Norberg, a former Secret Service agent, admitted that she had some doubts about just how successful the whistleblower office would be when she joined the SEC in 2012.
Flash forward nine years and it's clear the whistleblower program is instrumental in helping Wall Street's top cop crack down on financial crime, everything from Ponzi schemes and insider trading to bribery and market manipulation.
Awards range between 10% and 30% of the fines imposed in SEC actions that result from whistleblower tips.
"They may be taking a serious professional risk by coming forward," Norberg said of whistleblowers who work at companies and decide to tip off the SEC.
Despite the success of the whistleblower program, the SEC's critics worry the agency isn't doing enough to catch financial criminals.
Still, Kohn applauded Norberg for making the SEC's whistleblower office a "model" for the rest of the nation.