Senator Grassley blasts SEC plan to allow whistleblower award reductions

24 September 2018 7:28pm
US Senate Judiciary Committee Chairman Charles Grassley said the Securities and Exchange Commission proposal to allow reductions of large whistleblower awards would weaken top executives’ incentive to report major misconduct.

Grassley’s letter last week puts the longtime whistleblower advocate at odds with Wall Street and with SEC Chairman Jay Clayton, a Trump appointee.

“Far from intending that the Commission nickel and dime awards to the most successful whistleblowers, Congress placed great weight on the value of a predictably comfortable award margin,” wrote Grassley, who also is chairing confirmation hearings for Supreme Court nominee Brett Kavanaugh.

The SEC proposal would give the agency discretion to lower awards to as low as $30 million to whistleblowers who furnish tips leading to sanctions of more than $100 million.