Recall that the Dodd-Frank reform bill encouraged whistleblowers to step forward with information about securities fraud committed by their firms. The rewards are substantial. Employees who provide the SEC with original information that leads to a successful enforcement action will now be able to claim a 10 percent to 30 percent cut of any fines over $1 million. That includes a cut of the proceeds from related regulatory actions and shareholder suits.

A lot of lawyers sense opportunities and are gearing up for increased business. One lawyer has started sponsoring ads in Manhattan movie theaters, which encourages potential whistleblowers to visit his website. You can view the video here.

All in all, there is a lot of concern on Wall Street regarding the new rules. The rewards are generous, and some employees may be tempted to take a flyer. The SEC will likely set up an online system to allow informants to report fraudulent activity, making it even easier to act on impulse.

The final rules are still being set, and big companies are going all out to lobby for more lenient terms. They would like, among other things, for the new rules to specify that a would-be whistleblower go through company-established processes first--which rankles whistleblower advocates. That effort is culminating now. The debate is heated. 

For more:
- here's a Washington Post article

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