'Bleak' start at SEC's $453M whistleblower program

The Securities and Exchange Commission says its new Office of the Whistleblower received more than 3,000 tips about lies and fraud in corporate and municipal bond reporting and securities sales, has investigated many of the tips, has issued more than 100 "Notices of Covered Action" for whistleblowers on cases involving losses of more than $1 million -- and has paid off just one tipster, awarding $150,000 to an unnamed person whose information helped speed a $1 million fraud award against an unnamed securities fraudster. Only one-third of that award has actually been paid out.

"The Office of the Whistleblower employs eight lawyers, three paralegals, and a program support specialist. The Office has been funded with over $450 Million ... Twelve months, twelve professionals, a $450 Million allocation, but only one award of $50,000?" writes Todd Cipperman, managing director of Cipperman Compliance Services, Wayne, in a brief report to clients. "This is a pretty bleak picture for program advocates."

Read the SEC report at http://www.sec.gov/about/offices/owb/annual-report-2012.pdf

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