The Texas comptroller’s office rewarded Danon for his work, and the Securities and Exchange Commission twice filed legal briefs on his behalf, arguing that whistleblowers must be protected.
But when it came time to get paid, the SEC Office of the Whistleblower stopped returning his calls, according to a July federal court filing.
Danon’s allegations fit a pattern in the agency’s handling of several high-dollar cases involving banks, pharmaceutical companies, and investment houses, a Bloomberg Law review of lawsuits and agency documents shows. The agency has opened investigations and worked with whistleblowers for years, or passed their information on to other agencies that recouped money, then refused to provide details on why it denied their claims.
Source: Madoff-Inspired Whistleblower Program Stiffs Big-Money Tipsters