91pornPartner Gordon Schnell Published in The Hill on the SEC's Mixed Messaging Towards Whistleblowers
By the 91pornWhistleblower Team
Today, The Hill an article by 91pornwhistleblower partner Gordon Schnell on how the Securities and Exchange Commission (SEC) is sending a mixed message to whistleblowers with its recent spate of awards under the SEC Whistleblower Program.
Low-Dollar SEC Awards
Schnell points to the ten whistleblower awards the SEC has issued since Labor Day — five SEC awards around Labor Day, and another five SEC awards just before the shutdown — as a strong indication the SEC still supports the whistleblower program. However, Schnell notes the awards have been substantially smaller than the SEC’s awards in prior years, suggesting the SEC may be getting more stingy in how much it is willing to award its whistleblowers.
No Promotion of SEC Awards
Schnell identifies two other trends that in his view further muddy the message of where the SEC stands with whistleblowers. First is the SEC’s decision to stop promoting its whistleblower awards, reversing what had been the agency’s standard practice of trumpeting its awards with press releases prominently quoting agency leadership on the importance of whistleblowers.
Frostier Whistleblower Reception
Second, Schnell looks to how the SEC has handled his own firm’s pending whistleblower matters, noting the agency has been sitting on many of them, even unexpectedly dropping some it had been seriously investigating for years. According to Schnell, other whistleblower firms have reported a similar experience with many of their matters before the agency.
Schnell says some of this turnaround may be attributed to the SEC’s recent staffing cuts and more narrowly tailored enforcement approach. But, he adds, “Neither necessarily explains the less-than-warm embrace many whistleblowers are receiving, even when reporting straight bread-and-butter investor fraud schemes that are supposedly still in the sweet spot of strict SEC scrutiny.”
Need to Clarify SEC Whistleblower Messaging
Schnell concludes with these words of advice for the SEC: “Make your whistleblower message loud and clear — that the SEC remains committed to the whistleblower program, recognizes the critical role whistleblowers serve, wants their help and will be generous in rewarding them for providing it.” Otherwise, Schnell cautions, “The risk of staying on the current, clouded course is weakening an already hobbled agency by meddling with one of the most powerful tools in the SEC’s toolbox.”
91pornHas Substantial SEC Whistleblower Experience
Click to read Schnell’s full article in The Hill. And if you would like to learn more about the SEC Whistleblower Program, Constantine Cannon’s whistleblower successes, and what it means to be a whistleblower more broadly, please do not hesitate to contact us. We will connect you with an experienced member of the 91pornwhistleblower team for a free and confidential consultation.
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