$11.7 million for blowing the whistle

Even before the Dodds-Frank Act comes into play, whistleblowing can be lucrative in the United State

On Tuesday, Martha Gill revealed the new rewards enabled by the Dodds-Frank act for American whistleblowers.

As she wrote:

A change in whistle blower regulation now has employees rushing about making secret recordings and photocopying internal documents... The new law potentially offers multimillion dollar payouts for those who uncover cases of fraud...

That said, the Securities and Exchange Commission (SEC) is not exactly rushing to reward its informants.

The Dodds-Frank act has yet to pay out, but the major change it introduced was the ease with which whistleblowers could get paid, rather than the concept of paying whistleblowers per se. America has a longstanding tradition of financial rewards to those prepared to go through the arduous process of revealing an employer's illegal actions, and on Wednesday, two Georgia mortgage brokers, Victor Bibby and Brian Donnelly, received $11.7m for doing just that.

Reuters reports:

The pair, who worked for U.S. Financial Services Inc, a mortgage brokerage firm in Alpharetta, Georgia, said they became suspicious when lenders told them not to show an amount charged for attorneys fees on loan documents, but instead add the sum to the charge shown for "title examination fee."

After lenders ignored their concerns, Bibby and Donnelly hired an attorney and filed a whistleblower suit.

In the end, the information they supplied was instrumental in forcing JP Morgan to pay a $45m settlement to the government, of which the pair - and their attorneys - received 26 per cent. The case was one of five settlements instituted by whistleblowers which came to light this week, for a combined payout of $227m.

They had to work hard for their money, however, and it is this disincentive which the SEC will be hoping to remove:

The suit remained under seal to give the government time to investigate. Bibby and Donnelly had to keep mum for more than five years and try to find ways to avoid charging the hidden fees.

"For both our families being hushed for such a long time and holding this inside was unbearable," Donnelly said in an interview. "It puts a lot of stress on you."

Being able to get the payout without the five years of living a lie could indeed markedly increase the number of tips. The next concern will be weeding the cranks from the pile.

Referee Mark Clattenburg blows his whistle, ending some football. Credit:Getty

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Why it's a mistake to assume that Jeremy Corbyn has already won

The shadow chief secretary to the Treasury on why the race to be Labour's leader is far from over.

They think it’s all over.

But they’re wrong.

The fat lady has yet to sing.

The commentary and reporting around the Labour party leadership campaign has started to assume we have a winner already in Jeremy Corbyn. The analysis, conjecture, predictions/complete guesswork about what happens next has begun in earnest. So we have seen speculation about who will be appointed to a Corbyn shadow cabinet, and “meet the team” pieces about Jeremy’s backroom operation.

Which is all very interesting and makes for the usual Westminster knockabout of who might be up and who might be going in the other direction pdq...

But I think it’s a mistake to say that Jeremy has already won.

Because I hear that tens of thousands of Labour party members, affiliates and registered supporters are yet to receive their ballot papers. And I am one of them. I can’t remember the last time I checked my post quite so religiously! But alas, my papers are yet to arrive.

This worries me a bit about the process. But mostly (assuming all the remaining ballots finally land in enough time to let us all vote) it tells me that frankly it’s still game on as far as the battle to become the next leader of the Labour party is concerned.

And this is reinforced when we consider the tens of thousands who have apparently received their papers but who have yet to vote. At every event I have attended in the last couple of weeks, and in at least half of all conversations I have had with members across the country, members are still making their minds up.

This is why we have to continue fighting for every vote until the end – and I will be fighting to get out every vote I possibly can for Yvette Cooper.

Over the campaign, Yvette has shown that she has a clear vision of the kind of Britain that she wants to see.

A Britain that tackles head-on the challenges of globalisation. Instead of the low-wage low-skill cul-de-sac being crafted by the Tories, Yvette's vision is for 2m more high skill manufacturing jobs. To support families she will prioritise a modern childcare system with 30 hours of fully funded child care for all 3 and 4 year olds and she will revive the bravery of post war governments to make sure 2m more homes are built within ten years.

It's an optimistic vision which taps into what most people in this country want. A job and a home.

And the responses of the focus groups on Newsnight a few days ago were telling – Yvette is clearly best placed to take us on the long journey to the 2020 general election by winning back former Labour voters.

We will not win an election without winning these groups back – and we will have to move some people who were in the blue column this time, to the red one next time. There is no other way to do it – and Yvette is the only person who can grow our party outwards so that once again we can build a winning coalition of voters across the country.