December 12, 2010
December 12, 2010
Chairwoman Mary Schapiro:
As you well know, Whistleblowers are an invaluable source of information leading to the discovery of Securities Fraud in the market place.
Whistleblowers, be it investors, by-standers, company employees who see and know that securities laws are being broken need to have a voice, to be heard by your agency to assist you in ending the corruption on Wall Street and returning credibility to the U.S.A. Markets. Investors do their due diligence on the companies they invest in therefore, they know a fraudulent company, and/or trading fraud the moment it is happening. I use the example of Naked Shorting across all markets investors knew stocks were being naked shorted but they had no voice to the Securities and Exchange Commission. Many investors complained, but were ignored. Finally, the Commission listened too a complaint, Christopher Cox banned naked shorting across all exchanges immediately after September 16, 2008, unfortunately it was only a temporary ban.
I tell you that establishing an Office that directly reports to the Chairman's Office, call it a "Hot Line Office" for whistleblowers giving them direct access to Enforcement Lawyers be it by telephone number, an email address, or a form for them to complete that gets the Chairman's Office IMMEDIATE attention within hours after whistleblower submission is a invaluable tool for the Commission.
Publish this "Hot Line Office" information in a prominent place, making it easy for the public to use. I recommend a telephone Hot Line where the whistleblower can talk to a person, wherein, a Securities employee can ask questions of the Whistleblower if more information is needed, saving time and effort to understand the whistleblow. The Commission should have specifics of how to blow the whistle and specifics about what information is needed to have a successful whistleblow. Establishing this Hot Line Office will be an invaluable tool for discovering securities fraud. The establishment of this office with a staff that acts upon all submissions immediately, will give the commission the ability to curb the run-away fraud being committed on wall street today. You see, instantly you will recruit every investor, every Wall Street employee, and others, as a "street cop" to help you in the Commissions mission to protect investors from fraud thereby acquiring credible information to curb the fraud across all markets. Also, providing the public this "Hot Line Office" to report to the Commission, fraud saves the Government budget dollars. By publishing needed specifics to qualify the whistleblow, the Commission will receive solid leads since you pre-qualified the information the Commission requires such as names, the time of the incident and all involved in the fraud saves your staff employees time and budget dollars in discovery of the reported securities fraud.
Giving these whistleblowers a monetary reward a percentage of the fraud they expose, is incentive for all eyes that see securities fraud to report it to you for the reward money. This proposed whistleblower reward is a "bounty, a warning sign to all securities fraudsters, for they realize that all who see their fraud could monetarily profit off their fraud. The current fraudsters mindset, which is committing securities fraud goes on without consequence, would change.
It's time to do everything possible to return credibility to our market place, voting in this proposed law is a major step toward that goal. Our national credit rating is falling because of all the corruption on Wall Street voting in this rule will also improve that rating.
Request you vote to make this proposed rule, law. Then, prepare for the flood of Whistleblowers and major correction across all markets and the globe.
Thank you for proposing this rule. Request you pass this rule.