The Weird Workplace

American Idol hit wrong key with background checks: Lawyer; Blind to the problem; Crime doesn't pay, whistleblowing does; Jurassic discovery
|Canadian HR Reporter|Last Updated: 10/22/2013

Crime doesn’t pay, whistleblowing does

WASHINGTON, D.C. — An anonymous whistleblower has been awarded $14 million (all dollars US) by the Securities and Exchange Commission (SEC), the largest award the agency has ever handed out. Two years ago, the SEC and the Commodity Futures Trading Commission (CFTC) launched programs to encourage whistleblowers to report corporate wrongdoing, but there hadn’t been much activity on the reward front. Under SEC rules, a whistleblower can receive anywhere from 10 per cent to 30 per cent of the monetary sanctions collected if they exceed $1 million. In 2012, the SEC received 3,001 tips but only paid a total of $170,000 to four whistleblowers. In the same period, CFTC received 58 tips and paid out nothing. But with the huge cash award handed out earlier this month, that tide seems to have turned — the SEC said high-quality tips that could lead to big payouts are now being submitted routinely.

American Idol hit wrong key with background checks: Lawyer