Whistle blowers to get big cash rewards - KWWL - Eastern Iowa Breaking News, Weather, Closings

Whistle blowers to get big cash rewards

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WASHINGTON, D.C. (KWWL) -

Whistle blowers who report corporate fraud or other misconduct to the government could receive sizable cash awards under new rules adopted by federal regulators.

Tipsters would be eligible if they give the Securities and Exchange Commission information that leads to an enforcement action resulting in more than $1 million in penalties.

The SEC would pay up to 30 percent of the money it recovers from a company or person. A divided SEC voted 3-2 to adopt the new whistle blower program.

The two Republican commissioners objected. The program was mandated by the financial overhaul law enacted last year. It was contested by big U.S. companies. They argued that whistle blowers should first have to tell their companies of misconduct and give them a chance to correct problems before informing the SEC.

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