December 2, 2001 was a day that will live in economic infamy. This was the day when energy giant Enron finally declared bankruptcy. It was something that had been expected for the few months leading up to this date, but it would have been a total shock just a year prior. The mega corporation was committing accounting fraud on a massive scale, and it was finally found out thanks to SEC tips provided by some insiders in the company.
This was a shining moment for the SEC whistleblower program, and that program still seeks to uncover cases of corporate fraud both large and small. In fact, the SEC will provide an SEC whistleblower lawyer to anyone in an SEC regulated corporation that can prove that fraud is occurring.
How Does This Fraud Go On Without Notice?
There is a lot of fraud that does not get reported for years if at all because people are afraid for their jobs and livelihoods. They have to weigh the risks of accepting an SEC whistleblower attorney against the odds that they will likely be fired for making a claim against the company that they work for. At the end of the day, a lot of people simply decide that they would rather save their own skin than report crimes that are happening.
It is easy to jump to accusing such people of being a part of the conspiracy to cover things up, but the reality is that most people would do the exact same thing if put in the same position. We don’t always talk about it, but we certainly do end up in the same place in a lot of situations.
Making Whistle Blowing More Acceptable
The SEC desires that more people come forward with claims of fraud when they see it happening. The regulatory body also understands that doing so is a personal risk for the individual who does so. Therefore, the SEC has set up an award that they present to people or persons who have helped to uncover some of the most vital fraud cases of the year.
It is nice to see people get recognized for doing something that they should be doing all along. This is a small step towards helping to bring out more of the fraud that is present in our society, but it is a critical one. When people are rewarded for good behavior and not bad behavior things tend to work out better for everybody.
Fraud is never going to be completely eliminated from society, but we can certainly do whatever we possibly can to reduce its impact and to punish those who commit such acts as much as we possibly can.