How To Make Millions As a Professional Whistleblower

🌈 Abstract

The article discusses the work of Richard Overum, a professional whistleblower who makes a living by identifying and reporting financial fraud to government agencies in exchange for a percentage of the resulting fines and settlements. The article details Overum's methods, including going undercover to gather evidence, and the lucrative payouts he has received through the SEC and CFTC whistleblower programs.

🙋 Q&A

[01] Richard Overum's Work as a Professional Whistleblower

1. What are the key aspects of Richard Overum's work as a professional whistleblower?

• Overum goes undercover, posing as a potential investor, to gather evidence of financial fraud and wrongdoing
• He uses aliases and elaborate cover stories to maintain his anonymity and avoid blowing his cover
• Overum has received tens of millions of dollars in whistleblower awards from the SEC and CFTC for the tips and evidence he has provided
• He is developing a plan to train and deploy a "school" of new whistleblowers to expand his operations

2. What motivates Overum to work as a professional whistleblower?

• Overum was impacted by a financial fraud that devastated his family when he was young, which sparked his interest in this work
• The lucrative financial incentives of the whistleblower programs, which can pay out millions of dollars, are a major motivator for Overum

3. How does Overum identify potential targets for his whistleblowing activities?

• Overum receives tips from lawyers and others who suspect financial wrongdoing
• He also proactively searches social media and other sources for signs of lavish lifestyles and questionable business practices that could indicate fraud

4. What are some of the challenges and risks Overum faces in his work?

• Overum has to maintain a high degree of vigilance to avoid blowing his cover, such as avoiding being caught on camera
• He has faced situations where potential targets were armed, which was unsettling for him early on
• There can be long delays between when Overum files a tip and when any resulting enforcement action and payout occurs

[02] The Whistleblower Incentive Programs

1. What are the key features of the whistleblower incentive programs at the SEC and CFTC?

• The programs were established to encourage people to report financial wrongdoing, with the incentive of receiving 10-30% of any fines or settlements over $1 million
• Between 2011 and 2023, the SEC has levied over $6 billion in sanctions and paid out close to $2 billion to whistleblowers
• Recent high-profile payouts have been in the tens and even hundreds of millions of dollars

2. How has the existence of these programs led to the development of a "cottage industry" around whistleblowing?

• Lawyers and firms have emerged that specialize in representing whistleblowers and helping them present their evidence to the agencies
• Some firms even provide financing to whistleblowers, taking a portion of any eventual awards
• This has led to concerns that the programs' original intent of incentivizing citizen whistleblowers has been warped, with more of the funds going to professional operators like Overum

3. What are some of the criticisms that have been leveled at the whistleblower programs?

• Some observers worry that the programs have created an industry of professional whistleblowers, rather than empowering regular citizens
• There are concerns that the large payouts may be distorting the original purpose of the programs

[03] Overum's Investigation of Mike King

1. What led Overum to investigate Mike King, the real estate developer?

• Overum was tipped off about King by one of his attorney contacts, and initial research showed signs of lavish living that raised Overum's suspicions
• Overum decided to approach King posing as a potential investor to try to gather more information and evidence

2. What did Overum uncover about King's business practices through his undercover interactions?

• King made claims about investment opportunities and returns that seemed too good to be true, raising Overum's concerns about potential fraud
• King appeared to be misrepresenting the value of his assets and the details of his business operations to potential investors

3. How did Overum plan to use the information he gathered on King?

• Overum and his lawyer, Mark Pugsley, were strategizing about the best way to file a report with the government and present the evidence they had gathered, in order to maximize their chances of receiving a whistleblower award

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