Proposed Whistle-Blower Rules Analyzed

The S.E.C.’s Whistle-Blower Rules – NYTimes.com, 11/9/2010, by Peter J. Henning contains one of the best attempts to summarize the SEC proposed rules to date.

I suspect that an employee’s decision to report information internally is unlikely to have much impact on any award the S.E.C. may give when the whistle-blower is already guaranteed 10 percent of the recovery, particularly if the violation is significant.

Given the recent election results, I’m surprised but delighted with his prediction:

Rather than limit whistle-blowing, I would not be surprised if Congress expanded the program in the securities and commodities fraud area to other government programs, such as health care and defense contracting.

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