The disappointed informant who gave up a reward of more than US $ 8 million – BBC World

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Image caption Eric Ben-Artzi a million dollar reward for exposing malpractices of Deutsche Bank earned.

It does not happen very often that someone has a million dollar reward to reach and decide give it up.

But that is precisely what made Eric Ben-Artzi, an informant who betrayed the Deutsche Bank by fraudulent accounting and has refused to collect their share of the reward granted by the regulatory agency US stock market (the Securities and Exchange Commission , SEC).

a Ben-Artzi are you US $ 8,250,000 of a prize total of US $ 16.5 granted the SEC in its program to promote the accusations about bad banking practices, according to the FT.

“the SEC just told me that I will receive half a reward for informants of US $ 16.5 million. But waive my part, “begins an opinion piece published Thursday that the Financial Times ..

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Image caption The Deutsche bank is the greatest bank in Germany.

Ben-Artzi worked as a risk analyst for the bank but was fired after his criticism of the accounting fraud that was being done in crisis financial.

Then came the SEC and the information he provided helped the agency to investigate the bank and end up imposing a fine of US $ 55 million by overvaluing its product portfolio derivatives in May 2015.

“at the peak of the financial crisis, the financial statements of Deutsche Bank did not reflect the significant risk in these grades, complex, illiquid positions,” the chief said at the time execution of the SEC, Andrew Ceresney, said AFP.

But Ben-Artzi believes that the SEC has not punished as they should to executives responsible .

rather, his opinion is that by imposing a general fine on the bank, the SEC has finished punishing the employees and shareholders of the entity, so they and dismissed workers who are carrying the sanction.

“I ask that my part of the prize is for Deutsche and its shareholders” , says in his article.

“I will not join the looting of the same people that I was hired to protect,” he adds there.

actually Ben-Artzi can only give up a part of their reward, for the rest corresponds to your ex-wife, his lawyer and expert that helped prepare the documents sent to the SEC, explains the FT.

But, according to the newspaper, the first time that an informant rejects an award from the SEC.

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Image caption the SEC launched its rewards program in 2011.

in his article, the analyst suggests that one of the reasons why Deutsche bank executives were not punished is the the largest in Germany “revolving doors” that between the SEC, which is an agency of the US government and the bank itself.

“Lawyers at the top of the SEC had senior positions in the bank, and out of important positions in the SEC even when they had already started investigations into malpractice in the Deutsche Bank” denounced.

the rest of the prize, another $ 8.25, correspond to another agent bank.

a third employee also requested the reward but the SEC is not awarded.

Ben-Artzi now works as vice president of risk analysis in a company financial management.

the SEC launched its rewards program 2011, which provides for payment to people who provide “original information of high quality” that generate penalties of more than US $ 1 million, says on its website.

the range of rewards will from 10% to 30% of the money raised.