November 27, 2010
To assure the program works, it would be important to address two issues
1) Statute of Limitations for fraud. There should be clarification provided to potential whistleblowers as to how old of a fraud will be avidly pursued. Is there truly a statute of limitations for a securities fraud if the act is a criminal act?
2) Whistleblowers should be provided with assurance their tip will be pursued and not cut off by political or any organized crime element within the SEC. To assure this, the provider of information should be allowed to see the case file, cautioned not to trade on the situation (or face prosecution for same) and in time, if no action is to be taken, the provider of this information should be shown conclusive evidence as to why. If the SEC will not share with the provider, the provider will be told repeatedly that you cannot confirm or deny that you are acting on the information. That is wrong. The system has no credibility if that will continue to be yur stance. In time, in a given new action, if the SEC will not complete the action, the file should be made public.
If you are going to have a real program, make it real, make it credible. If you only do it half-way, it becomes a joke. Remember, Rome fell.