Ted Siedle figures securities fraud is a growth industry.
A Securities and Exchange Commission lawyer-turned-financial industry watchdog, Siedle is raising an investment fund to cash in on the agency’s new whistleblower program.
After missing big frauds like the Bernie Madoff swindle, the SEC hopes the financial incentive will bring in more tips that lead to successful enforcement actions.
Siedle sees opportunity. In return for a share of the awards, he offers his expertise as a fraud investigator to would-be whistleblowers lacking the financial and legal know-how to develop a claim that piques the SEC’s interest.
“Our job is to do compelling research to convince the SEC to pursue an investigation,” he says. Siedle has carved out a niche helping mutual funds, pension plans and other institutional investors root out fraudsters. He says his firm already has an interest in 100 claims that might qualify for whistleblower awards. What he needs now is money to finance the investigations.
