Possibly what has changed is that there simply is more wrongdoing being exposed because more whistleblowers are coming forward, encouraged by the False Claims Act and whistleblower reward programs at the Securities and Exchange Commission, Internal Revenue Service and the Commodity Futures Trading Commission.
For instance, SEC officials say they are receiving many more “high-value” tips since the Dodd-Frank Act created an SEC whistleblower program. We know from our whistleblower clients that the possibility of a reward is a powerful reason insiders are willing to step forward and risk their careers. On the flip side, current corporate structures incentivize wrongdoing by making profits the overriding factor for bonuses and promotions. It’s time for companies to reward instead ethical conduct and compliance with laws.