Cash for Tips: SEC Rewarding Insiders


Steven S. Scholes, a partner who practices in McDermott, Will & Emery LLP’s SEC defense group, said the [SEC] compromised on [whistleblowing] with corporations in the run-up to the program’s creation. Audit and compliance professionals can only be rewarded if at least 120 days have elapsed since they provided the information through the company’s internal reporting system. “While compliance folks obviously have access to a greater amount of information, on the other hand, they’re required to convey that information first to the company,” Scholes said.