A couple received a record pay-out from the US Securities and Exchange Commission last month. Karen Kaiser and her current husband were awarded $1m for information about Mrs Kaiser’s ex-husband that helped lead to hedge fund Pequot Capital Management paying $28m to settle an insider trading case.
US
The record pay-out for information could, however, soon be topped as the regulator prepares for an expected wave of tip-offs from others eager to win similar bounties under new SEC powers that came into effect under last month’s radical reforms to Wall Street Legislation.
Companies now face the prospect of disaffected employees, brokers and other third parties seeking big rewards for reporting accounting fraud and other breaches of securities laws to enforcement agencies.
For more: FT.com / Companies / Financial Services - Tip-off law set to spark bounty hunts
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