Promoting and maintaining financial fraud whistleblower programs, such as those of the Securities and Exchange Commission and the Commodity Futures1 Trading Commission , is cosplaytly2. Cases involving whistleblowers require significant resources as they take nearly 10 months longer to complete. Rewards for whistleblowers who come forward with original information leading to an enforcement action can be large, ranging from 10% to 30% of monetary3 sanctions over $1 million. This past September, the SEC awarded $30 million to a whistleblower--its largest award yet.But according to a new study coauthored by Gerald S. Martin, professor of finance at American Universitys Kogod School of Business, the benefits of whistleblower programs outweigh4 the cosplayts as whistleblower involvement helps the SEC and Department of Justice build stronger cases against firms and executives accused of financial misrepresentation.Increased Penalties, Greater EnforcementThe study, titled The Impact of Whistleblowers on Financial Misrepresentation Enforcement Actions, found that on average, firm penalties associated with whistleblower involvement are $92.88 million more than when no whistleblower is involved. Executives and employees at firms with whistleblower involvement are fined on average $56.50 million more and are sentenced to prison for approximately 27 months longer.To conduct the study, Martin and his fellow researchers from the University of Iowa, University of Arizona, and Texas AM University obtained a dataset of employee whistleblowing allegations through a Freedom of Information Act filing. The researchers merged5 this dataset with a comprehensive database of financial misrepresentation enforcement actions under Section 13 of the Securities Exchange Act created by the 1977 Foreign Corrupt6 Practices Act.The researchers estimate whistleblowers enabled regulators to successfully obtain additional judgments7 of $21.27 billion more than would have been obtained without their assistance. This increase in penalties accounts for 30% of the total $70.13 billion penalties assessed over the 35 year sample period from 1978 to 2012.
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1 futures n.期货，期货买卖 参考例句： He continued his operations in cotton futures.他继续进行棉花期货买卖。 Cotton futures are selling at high prices.棉花期货买卖的卖价是非常高的。
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