undefined | Better HN

0 pointseganist6y ago0 comments

> Not if this research is what causes the stock to drop and is what allows them to collect a reward.

I don't understand the causative relationship you're asserting between a drop in value and a whistleblower award that's only granted after an enforcement action. How would a drop in stock value result in a whistleblower award?

0 comments

slg6y ago

Sorry, I misunderstood your comment then. I though you were using "reward" generally. A financial windfall from shorting a stock and then releasing bad news about the stock is a "monetary reward" that doesn't depend on the merit of the accusations. I didn't realize you were speaking specifically about a "whistleblower reward" which wouldn't be awarded until well in the future after the report had been verified.

shkkmo6y ago

What are you talking about? There is zero whistleblowing going on here. This is an outside investigative report funded by a hedge fund. The only link to whistleblowing is the investigators biography.

elliekelly6y ago

From the disclosures section of the report:

> Prior to the initial distribution of this Report on August 15, 2019, the Company also submitted this Report to the U.S. Securities and Exchange Commission’s Whistleblower Program and the U.S. Department of Justice’s FIRREA Whistleblower Program. Both or either of those submissions may generate profits for the Company independent of the financial performance of GE and/or the securities, derivatives, and other financial instruments of, and/or relating to, GE.

I don't know how the DOJ program works but SEC Whistleblowers can be awarded 10-30% of the money recovered as a result of their information.

SEC FAQ here: https://www.sec.gov/whistleblower/frequently-asked-questions

xbmcuser6y ago

I think he came out with the report as SEC had already started investigating GE. If he had not come out with his report he might not have been able to trade in GE stock as he would have had insider information and could be dinged for insider trading. After putting the information out in the public he can short all he wants.

fastball6y ago

How can you be a whistleblower if you use entirely public information?

j / k navigate · click thread line to collapse