Three whistleblowers who tipped off the Securities and Exchange Commission (SEC) about two banks that may have been overcharging clients for currency trades have filed claims seeking rewards for their assistance.
Under a new program within the Dodd-Frank Act designed to encourage individuals to report possible corporate wrongdoing, whistleblowers can receive monetary awards if their information leads to large enforcement penalties.
The SEC announced on Tuesday that between Aug. 12, when the whistleblower rules went into effect, and Sept. 30, the agency had received 334 tips about possible corporate wrongdoing.
Those who filed recent claims with the SEC include Grant Wilson, Peter Cera and Ryan Gagne. Wilson, a BNY Mellon trader, worked with investigators to compile evidence against the bank for overcharging investors on billions of dollars of currency trades for 10 years.
Cera and Gagne, who worked for State Street currency, provided the government with information about wrongful currency activities at their former employer. Both institutions have denied wrongdoing.
According to a Wall Street Journal report, the SEC expects to begin making payments under the new program sometime next year.
