Whistleblower Thought He Would Get a Big Payout. Instead He Got Nothing and Went Broke

John McPherson was almost certain he’d get rich from the Securities and Exchange Commission’s whistleblower program. Instead, he ended up bankrupt and embittered.

Despite what the SEC called his “extraordinary and continuing” assistance in helping the agency shut down an alleged $1.4 billion investment scam, Mr. McPherson was notified last year that his whistleblower award would likely be close to zero. The reason? The target company, Life Partners Holdings Inc., had declared bankruptcy, and the SEC never collected financial penalties it was owed. Investors, however, were able to recoup more than $1 billion through the bankruptcy process.: The regulator won’t pay awards for financial recoveries in bankruptcy proceedings, even if the affected company entered bankruptcy as a result of the agency’s enforcement actions.

Some critics say that discourages people from reporting the most egregious frauds—Ponzi schemes and companies with major accounting chicanery—which often collapse or end up in bankruptcy court.

The SEC does not have any backbone. Just look at the mess with the Ripple law suit. crypto $XRP

Critics in a Wall Street Journal report point to a big flaw in one of the most important tools the Securities and Exchange Commission has to catch fraud: via CFODive

Congress Sounds Off Against SEC in Madoff Affair via YouTube

Bernie Meets with the SEC - Madoff via YouTube

Top Five Corporate Frauds of The Century via YouTube

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Meanwhile, non-dividend stocks are Ponzi schemes by definition. PonziAssets

CIA whistleblower: This is an insult to real whistleblowers via YouTube

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