SEC gives over $700,000 reward to a whistleblower of high frequency trading: report
The US regulator is awarding more than $700,000, to a whistleblower who conducted a detailed analysis that led to a successful SEC enforcement action against NYSE 
 
Eric Hunsader, a vocal critic of high-frequency traders, had said the Securities and Exchange Commission is sending him a $750,000 whistleblower award, says a report from MarketWatch.
 
According to the report , Eric Hunsader of Nanex LLC provided information to the SEC that led to a first ever fine against an exchange. "On 15 January 2016, the SEC  confirmed it would pay 'more than $700,000' to a whistleblower that had provided the 'independent analysis as well as independent knowledge of securities law violations' that led to a $5 million fine for the New York Stock Exchange in 2012," the report says.
 
In a release, Andrew Ceresney, Director of the SEC’s Enforcement Division, said, "The voluntary submission of high-quality analysis by industry experts can be every bit as valuable as first-hand knowledge of wrongdoing by company insiders. We will continue to leverage all forms of information and analysis we receive from whistleblowers to help better detect and prosecute federal securities law violations.”
 
By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.
 
However, Hunsader showed MarketWatch a letter from the SEC that confirmed the approval of his award and told MarketWatch he was the recipient of a pending award for the tip that led to the NYSE fine. This is the first whistleblower award by the SEC under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to reward an independent third party for analysis of a potential securities law violation, the report says.
 
The SEC’s whistleblower program has paid more than $55 million to 23 whistleblowers since the program’s inception in 2011. Whistleblowers who voluntarily provide the SEC with unique and useful information that leads to a successful enforcement action may be eligible for an award.  Whistleblower awards can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.  All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money is taken or withheld from harmed investors to pay whistleblower awards.
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    COMMENTS

    Meenal Mamdani

    4 years ago

    I urge India's tax service to institute such a whistle blower program.

    If the identity of the whistle blower is kept confidential, the tax service will be able to catch a lot of people like doctors, lawyers, retail shop owners, for under-reporting their income.

    The award should be given high publicity to encourage many more to keep a close watch on the wrong doers.

    manoharlalsharma

    4 years ago

    only JEWELER can acknowledge the true value of DIMOND but,poor country like ours do not know price of INTELLIGENCE.

    Clinton wins two of first three Super Tuesday races

    Democrat Hillary Clinton on Tuesday scored two of the first three Super Tuesday contests

     

    Democrat Hillary Clinton on Tuesday scored two of the first three Super Tuesday contests, garnering an early advantage over Bernie Sanders, who won his home state of Vermont, according to multiple media projections.
     
    On the Republican side, New York billionaire Donald Trump was projected by all major US cable news to win handily in Georgia.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article
  • User

    Apple can't be forced by FBI to unlock iPhone

    It's a win for Apple, which is being pressured by federal law enforcement agents to help it break into iPhones in at least 13 instances across the country

     

    A federal magistrate-judge in New York city has ruled that the government can't force Apple to hack an iPhone to investigate a drug dealer.
     
    It's a win for Apple, which is being pressured by federal law enforcement agents to help it break into iPhones in at least 13 instances across the country.
     
    Apple says doing the federal government's bidding would undermine the security features in hundreds of millions of iPhones around the world, CNN reported.
     
    So far, the justice department was relying on the All Writs Act, 1789, which gives judges broad discretion in carrying out the law.
     
    On Monday, Judge James Orenstein said federal investigators cannot use that law to pull this off.
     
    The US government's argument does not justify "imposing on Apple the obligation to assist the government's investigation against its will", the judge said.
     
    The judge said law enforcement was inappropriately trying to use powers that it had not been given by the US Congress.
     
    "The question is not whether the government should be able to force Apple to help it unlock a specific device," Orenstein said.
     
    "It is instead whether the All Writs Act resolves that issue and many others like it yet to come... I conclude it does not," the judge ruled.
     
    The case involves a methamphetamine dealer, Jun Feng, who was arrested in 2014 and cut a plea deal with prosecutors.
     
    The Drug Enforcement Agency in 2015 got a search warrant to look through Feng's iPhone 5C to track down his fellow drug dealers and customers, but the device was running the iOS 7, and agents could not crack the passcode to see the data inside.
     
    The agency sought Apple's help. Apple initially said it would help. The US Department of Justice claims Apple was being inconsistent.
     
    "Apple... only changed course when the government's application for assistance was made public by the court," the department said on Monday.
     
    An Apple senior executive said on Monday that the company did offer to help -- but only if the US government makes a lawful request.
     
    "We will produce information when there is a lawful order to do so," the executive said. "But Judge Orenstein, on his own behalf, said he would not issue this order."
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
     

     

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