RAJARATNAM GUILTY VERDICT ATTRACTS FLOCK OF INSIDER TRADING WHISTLEBLOWERS

With the guilty verdict against billionaire hedge fund founder Raj Rajaratnam, whistleblowers are expected to come forward to reveal what some think is a rampant activity. The whistleblowers have a lot to gain under the newly minted Dodd Frank Act which allows for a reward of up to 30% of what the government recovers from the information provided by the whistleblowers. That’s a lot of incentive, on top of the special provisions preventing whistleblower retaliation. If it is the case that there are many high fliers who have traded on inside info for a while, there must be a lot of people losing sleep right about now. This is what the government intended in allocating resources to go after significant players. Deterrance and exposure. Stay tuned.