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The problem here is that he leveraged himself and pursued a case which resulted in bankruptcy which makes it hard for the SEC to collect a fine that they can di
by fastball 5y ago
The problem here is that he leveraged himself and pursued a case which resulted in bankruptcy which makes it hard for the SEC to collect a fine that they can disburse part of to the whistleblower.
Whistleblower rewards are great, but they must have limits, and he bumped into them here (while highly leveraging himself).
- modeless 5y agoNo, the problem here is that the whistleblower reward program is less effective than it should be because payouts are divorced from the effectiveness of the whistleblowing. If you set up a program that is supposed to reward a specific behavior, and then you don't actually reward that behavior, that is a problem. As I said, the leveraging he did is mainly a problem for the lender, who is now out $1m, not him.