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It's not easy being a whistleblower.
Just ask the few at the U.S. Securities and Exchange Commission's Office of Inspector General, the SEC's independent watchdog group that polices everyone at the SEC, when they filed a complaint against two of their own.
Last year, after whistleblowers in the IG's office claimed one of their supervisors and a junior subordinate were guilty of "time and attendance fraud" because the "two employees regularly disappeared together for several hours during workdays and engaged in inappropriate conduct in the office," the unappreciated whistleblowers had to then blow the whistle on the superiors they complained to for retaliating against them for blowing the whistle on their buddies.
If you think superiors retaliating or even threatening to retaliate against would-be whistleblowers could impede the investigations the SEC's supposed to conduct… you're right.
It Can Pay to Whistle While You Work
This may look like a small example, or perhaps just one scandal of many.
But what if it happened at the SEC to would-be whistleblowers years before Bernie Madoff's Ponzi scheme was discovered?
I'll give you the facts, and then I want you to be the judge.
Urgent: An $80 billion cover up? Feds use obscure loophole to threaten retirees… Read more…
In the small arena last year, the IG's probe of the supervisor and subordinate accused of time and attendance fraud was led by two senior officials. One of those senior officials hired and supervised the two employees.
It also turns out that Carl Hoecker, the SEC's Inspector General since 2013, appointed one of the two employees under investigation to, according to The Wall Street Journal, "help coordinate a review of procedures in the inspector general's office." Interestingly, the target of the complaint "removed language designed to prevent conflicts of interest affecting internal investigations, such as allegedly happened in this case," reported the WSJ.
Something smells fishy here.
About the Author
Shah Gilani is the Event Trading Specialist for Money Map Press. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.