Phillips & Cohen whistleblower attorney says SEC should learn from qui tam cases and IRS whistleblower program to create effective SEC whistleblower program

Dec. 15, 2010 - Whistleblower attorney says in an opinion piece published today that the Securities and Exchange Commission should rely on the nation's experience with qui tam cases and the Internal Revenue Service's whistleblower reward program rather than corporate lobbyists to structure the SEC whistleblower reward program.

"History shows that properly implemented whistleblower programs can return billions of dollars of ill-gotten gains to the Treasury and deter the loss of billions more, but also that whistleblower programs can be stifled by restrictive practices and interpretations of the law by entrenched bureaucrats,".

In the article, which is entitled "The SEC Whistleblower Program: How to Avoid Killing a Good Idea,", "The targets of the [Frank-Dodd] legislation and their attorneys are once again warning about dire consequences unless the SEC creates onerous regulations that would effectively discourage whistleblowers from coming forward."

The comment period on the SEC's proposed rules for the SEC whistleblower reward program ends Dec. 17.