September 14, 2018
I would like to reiterate the concerns voiced by Dom L Laviola, in an August 9, 2018 comment (https://www.sec.gov/comments/s7-16-18/s71618-4199136-172813.htm).
Specifically, it is reprehensible that the SEC is trying to change the rules of the program mid-game. Hundreds if not thousands of Whistleblowers have put their personal lives and professional careers on the line with noble desire to help others and fight against fraud and corruption.
If the SEC does not provide a grandfather mechanism for individuals who have submitted Whistleblower tips before the implementation of these rules - the SEC will have committed a great disservice to our financial system and trust in the Whistleblower program.
In fact, what the SEC is proposing can be appropriately described as a "bait-and-switch" scheme and completely analogous to a fraudster raising funds for one project and then misappropriating those investor funds to another project or otherwise unilaterally changing the allowed use of those funds without providing for the investor's legal rights.
Additionally, I would like to inquire about how the SEC orders its adjudication queue and would like to seek a complete and detailed response as to why the award determinations on August 13, 2018, September 6, 2018, and September 14, 2018 were processed before the implementation of these rules? The SEC has not provided a definitive answer as to whether claims are processed in a first-in-first-out method or processed in a queue that is at the discretion of SEC staff. Therefore, myself and the public deserve to know why these claims were processed in a manner that makes them exempt from the new rules and whether or not pending claims will be granted the same treatment.
The SEC must provide a grandfather clause and if it doesn't - many Whistleblowers will consider this program just as fraudulent as the scams they are reporting.
I will say it one last time, it is completely inappropriate to change the rules mid-game and the SEC should take immediate corrective action and make it clear that previous Whistleblower tips and Claims will be grandfathered in with the previous rules.