A financial forensic investigator has been rewarded for his years of work on a financial scam involving JP Morgan that resulted in a $267 million settlement with the Commodity Futures Trading Commission (CFTC).
The investigator, Edward Siedle, who formerly worked for the Securities and Exchange Commission, received $78 million as a reward for his efforts in the scam, as reported in the New York Post.
The scam found that JP Morgan was directing its own high-net worth clients towards high-fee funds than those offered by competing firms. These funds included commodities-related funds, so the CFTC became involved in the lawsuit against JP Morgan. The bank also agreed to pay the CFTC $100 million to settle that violation, plus the $267 million to settle the charges filed by the SEC.
Sources cited by the Post said this is the largest reward ever paid to a whistleblower. The award to whistleblowers was part of the original Dodd-Frank financial reform law that Republicans have been fighting since its inception in 2010. The Republicans have consistently moved to repeal or reduce the Act’s scope, while it has also pursued other anti-investor initiatives, such as defunding or closing the Consumer Finance Protection Bureau.
Whistleblowing Is Crucial
While whistleblowing is one of the most powerful weapons against omnipotent corporations that use their power to beat down opposition, this practice also has its detractors. But whistleblowing is growing in popularity even though it does not receive a lot of publicity.
This may be one reason why CBS is broadcasting a new series on this topic. For details , see this CBS site.