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“Financial reform law includes big cash incentives for whistle-blowers.”

Erika Kelton in the Los Angeles Times, 7/23/10.

The new SEC whistleblower program “is very significant and will have an immediate impact,” said Erika Kelton, a Washington lawyer who has represented whistle-blowers. “It will motivate knowledgeable insiders to step forward and tell the enforcement agencies what they know. It is the secret weapon in this massive bill.”

Goldman Sachs recently agreed to pay $550 million to settle a suit brought by the SEC accusing the investment banking firm of misleading investors who bought mortgage-backed securities just as the housing market collapsed. Had the case arisen from a whistle-blower’s tip under the new law, “it would mean at least $55 million for the whistle-blower,” Kelton said.

“Financial reform law includes big cash incentives for whistle-blowers.”

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