Citizen spies – here? In the US?

December 16, 2010 06:03

Citizen bounty hunting is a disturbing turn in the crush of big government under the Obama Democrats.

Dodd-Frank’s whistleblowing gold mine

By Joseph Smith at American Thinker


The SEC is “bracing for a flood of tips about alleged corporate fraud coming from people seeking large new bounties created by the law,” according to the Wall Street Journal.  The SEC bounties start at a “minimum reward of $100,000,” although staffing for the program is not yet funded.

The Journal reports that the SEC expects to get 30,000 tips a year, with half leading to “formal money claims.” The SEC whistleblower program follows a similar IRS program started four years ago, which resulted in 5,700 tips and 468 “qualifying” claims in the last fiscal year.

So rather than tighten up a system that allowed “numerous tips” about Madoff to be overlooked, Congress has created a new program to overwhelm the regulators with all manner of tips, in the process undermining “internal compliance programs already in place at companies,” as the Journal writes.


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