Law360 | April.05.2013
This article, about a survey of hedge fund professionals which indicated that many would be willing to report misconduct to the SEC, quotes employment law partner Mike Delikat.
"With SAC Capital and [Galleon Group LLC founder] Raj Rajaratnam, there's a lot of publicity around alleged wrongdoing in the hedge fund industry," Delikat said. "That makes it ripe for tips being reported to the SEC."
Delikat also stated that, if a New York federal judge approves the $600 million SAC settlement, the deal should produce a whistleblower award of between $60 million and $180 million, if a tipster was involved. Such an award could further encourage hedge fund employees to turn in their colleagues, he said.
"There's a lot of money in play for whistleblowers that provide original information.”