Another Whistleblower Award Issued by CFTC to Individual Exposing Fraudulent Activity

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Ratting wrongdoers out for money is far more effective than any regulatory agency ever could be.

SEC issued another whistleblower reward - they recently handed out around $9.2 million to an undisclosed whistleblower, as the individual in question aided the agency in busting a major financial scam. The official announcement by SEC was released this Tuesday, and the US regulator confirmed that the victims of the scam have been reimbursed.

 

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Ratting wrongdoers out for money is far more effective than any regulatory agency ever could be.

Interestingly you also see this in small business requirements for federal government contracts. There are a bunch of contracts that only small businesses are legible to bid on. Unlike a veteran owned business, which has a looooong (ask me how I know) and complicated process you have to go through to be certified, you basically do a quick self reporting process to say you are a small business that no-one even checks. But there are surprisingly few cases of businesses getting contracts as small businesses that shouldn't have because instead of putting the manpower into certification they put it into enforcement. And you better believe all the legitimately small businesses that lose an RFP to a company that wasn't legitimately a small business will let the enforcement arm know exactly what happened immediately. So while there are a few big cases, the bureaucracy necessary to run this whole thing is surprisingly small. Probably a fraction of the size of the VA business certification bureaucracy even though the number and $ value of small business contracts dwarfs veteran owned business contracts.