Money Talk: SEC’s Secretive Whistleblower Program Pays Out $3 Million To Company Insider
by July 20, 2015 9:15 am 181 views
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SEC’S SECRETIVE WHISTLEBLOWER PROGRAM PAYS OUT $3 MILLION TO COMPANY INSIDER
The Securities and Exchange Commission announced a whistleblower award of more than $3 million last week to a company insider whose information helped the SEC crack a complex fraud. The multi-million dollar payout is the third highest award to date under the SEC’s whistleblower program.
The whistleblower’s specific and detailed information comprehensively laid out the fraudulent scheme which otherwise would have been very difficult for investigators to detect, SEC officials said. The whistleblower’s initial tip also led to related actions that increased the whistleblower’s award.
Whistleblowers who provide the SEC with unique and useful information that contributes to a successful enforcement action are eligible for awards that can range from 10% to 30% of the money collected when financial sanctions exceed $1 million.
By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity. Since its inception in 2011, the SEC’s whistleblower program has paid more than $50 million to 18 whistleblowers, including a $30 million award in 2014 and one for more than $14 million in 2013.
For more information about the whistleblower program and how to report a tip, visit here.
AMERICANS FEELING BETTER ABOUT FINANCIAL OUTLOOK
Americans’ personal financial satisfaction has hit a new post-recession high, according to the Q2 2015 “Personal Financial Satisfaction Index” (PFSi) released last week by the American Institute of CPAs.
Buoyed by an increase in job openings and a rise in home equity values coupled with continued reductions in loan delinquencies, the financial outlook for the average American is the most positive it has been since the third quarter of 2007.
Overall, The Q2 2015 PFSi index measured 15.0, representing a 1.9 point increase from the prior quarter and an 18.2 point increase from one year ago. Inflation, now registering at historically-low levels, was also a contributing factor in the PFSi increase from the previous quarter. Additional information on the PFSi can be found here.
ARKANSAS BANKS KICK-OFF QUARTERLY EARNINGS PERIOD ON HIGH NOTE
Fast-growing Arkansas regional financial holding institutions, Bank of the Ozarks and Home Bancshares, opened the second quarter earnings period for Arkansas publicly traded concerns with strong financial performances.
A week ago, Bank of the Ozarks easily beat year ago results and met Wall Street expectations by reporting second quarter earnings of 52 cents a share, up 53% from 34 cents a year ago. Home Bancshares followed up on Thursday with quarterly earnings of $33.9 million, or 50 cents per share, up 19% from $28.4 million or 43 cents per share for the same quarter in 2014.
Simmons First National and Bear State Financial are expected to report their second quarter earnings later this week.
PEW RESEARCH: ONLY 13% OF WORLD’S POPULATION CONSIDERED MIDDLE CLASS
In 2011, a majority of the world’s population (56%) continued to live a low-income existence, compared with just 13% that could be considered middle income by a global standard, according to a new Pew Research Center analysis.
And though there was growth in the middle-income population from 2001 to 2011, the rise in prosperity was concentrated in certain regions of the globe, namely China, South America and Eastern Europe. The middle class barely expanded in India and Southeast Asia, Africa, and Central America.
Even those newly minted as middle class enjoy a standard of living that is modest by Western norms. As defined in this study, people who are middle income live on $10-20 a day, which translates to an annual income of $14,600 to $29,200 for a family of four. That range merely straddles the official poverty line in the United States—$23,021 for a family of four in 2011.
Find out where you stand by entering your household income in the Pew Research calculator here.