July 11, 2018
Dear Securities and Exchange Commission,
I strongly oppose the shocking proposed amendments to the rules governing the SEC whistleblower program (File Number S7-16-18). Such rule amendments will sabotage and completely undercut the intended deterrent and open records effect of rewarding whistleblowers.
I call your attention to the public statements issued by Commissioners Stein and Jackson and the Law360 Op-ed "The Problem With SEC's Plan To Cap Whistleblower Awards." (https://bit.ly/2L0WTaJ) These statements outline my reasoning as to why and how the proposed amendments will undermine any enforceable policing of self-dealing, misleading the public and fraud, in the effort to assure more honest business practices associated with Wall Street.
Specifically, the proposed amendment to the rules capping rewards in the largest cases to the lowest percentage rate should be withdrawn. Furthermore, the SEC should ensure that every employee, regardless of position or title, can disclose corporate fraud and violations of laws directly to the SEC, and do so with impunity.
Any kangaroo "court" requirement that compliance officers, managers or directors work internally with the company before reporting to the SEC must be struck from the rules. What purpose would that serve other than pinpointing how and where to cover up any paper/digital trail? Or to withhold or destroy any evidence; or to impugn the character or competence of the reporting employee in a "he said / he said" debate with bosses or fellow workers? If there was no wrong done, open the books.
I request that you meet personally with whistleblower experts from the National Whistleblower Center, to obtain additional information clarifying why the proposed bootless amendments to the rules governing the SEC whistleblower program should not and must not be implemented!
Thank you for your careful consideration of this serious potential problem.
Sincerely,
Mr. William Moody