There have been some massive payouts from this...$5MM - $50MM even some over 100. Anyone ever try to submit tips to SEC? It's all anonymous obviously. Have an idea but just want to see if anyone here has had any luck with them
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I mentioned this to my PM one time as a joke and he body-slammed me in one of the conference rooms.
I meant separately from work (ie you personally submit tip to SEC about XYZ fraud…then you don’t need to split payout or anything)
Would you ever do that?
maybe its just me or my own experience, but I honestly think this is the funniest comment on this entire forum
50MM payout???? For one hint? How can I optimize my career for this.
There were a couple over 100m, one over 200m
It’s all online just search “sec whistleblower award” and you’ll see all their press releases with $ award amount.
So you get a % fee of the returns to SEC. If I was an HF, this could be a solid product for LPs.
I’ve LinkedIn messaged an FBI Director [Division redacted to stay vague]. It had leaked this Director was warning against using the company - he was focused on a foreign-military/weapons-development aspect, I was more interested in billing fraud and maybe laundering. He did not respond, but the following qtr they disclosed a new DOJ investigation into billing practices. I like to think I helped, probably not.
Why wouldn’t your tip have played a role (assuming this wasn’t a large cap name with many intelligent eyeballs on it)? Chain of events and circumstances seem like your tip would’ve influenced that (you cover XYZ mid cap industrials biz, spot billings fraud, shoot tip over to SEC, SEC then takes action a month later — without you involved / ever speaking to them)
And if they recovered something from investigation, that means they scammed you?
How do these work? You submit tip, SEC reaches out to you for incremental info (?), they launch investigation, you sit on sidelines / don’t do anything, and then if SEC successful, you get 10-30% of recovered proceeds?
Also if SEC doesn’t reply, would you go to an activist firm and have them take a look?
- I can’t say for sure, because they had the attention of FBI already for more serious things, could be they came across
- I did not go through any tip channels so wouldn’t expect to be paid,
- I also didn’t have any non-public evidence to provide (which I think u need as whistleblower). If you just put the pieces together from the outside, I don’t think you’re eligible
- the way to action fraud from HF seat is write a compelling pitch and provide to short activists or a journalist, or even find whistleblowers and bring them to media / regulators. Most shorts aren’t sexy enough or don’t have the conclusive smoking gun like NKLA rolling the truck
- staying vague, they had a healthcare product in a competitive market with an unusually high number of units-per-customer and also ASP much higher than peers. Much different payor mix vs peers too. Mgmt was either a large donor or related party to some of these. This indicates that certain hospitals might have been pass-through billing, maybe disguising this specific code in more general codes to get away. There were other mountains of smoke. Like most frauds shorts - either not sexy enough to get journalist/regulator attention or in this case too politically-connected/corrupt to really get in trouble. The fraudsters get rich but the stock still goes down and it was a very good short from financial perspective. Sometimes you’re 85% sure it’s a fraud and for that work you just get this thing that gradually bleeds out. Actually better imo can u can resize steadily and get a good IRR vs gap-down
Without giving away too much information, can you explain/give us an example of you actually uncovered said billings fraud/issue?
And now that FBI Director is living the good life in Key West with his 50 bucks that he made from your tip. Sucka!
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