GME - Star Shorts Carson Block And Nate Anderson Are Among SEC's Top Fraud Whistleblowers | Benzinga
An SEC whistleblower program aimed at helping the regulator detect fraud at public companies has attracted some high-profile tipsters among the short-selling community, including star names such as Carson Block and Nate Anderson.
The program, established in 2011, pays whistleblowers around 10% of the fines collected from the successful prosecution of a company found guilty of fraud.
Payments to whistleblowers are made out of an investor protection fund, established by Congress. It’s financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.”
So what’s in it for short sellers?
Large short positions, usually adopted by institutions such as hedge funds, only follow extensive research into a company’s activities. If there is any hint of wrongdoing, such as fraudulent accounting or misrepresenting the effectiveness of products or services, ...