Whistleblower rejects US$8M award, pinpointing regulatory gaps

Eric Ben-Artzi, a former Deutsche Bank risk officer, has refused a whistleblower award of more than US$8 million.

What’s more, he has penned an op-ed for the Financial Times that explains his motives. Ben-Artzi was offered the payout for his role in reporting improper accounting at Deutsche Bank, for which the bank was fined US$55 million in 2015.

Ben-Artzi reveals in his op-ed that he’s rejected the award because “the SEC imposed a fine on Deutsche’s shareholders instead of the managers responsible.”

He also writes, “I will not join the looting of the very people I was hired to protect. I never intended to turn a job in risk management into a crusade, but after suffering at the hands of the Deutsche executives I will not join them simply because I cannot beat them.”

Ben-Artzi has requested that his payout “be given to Deutsche and its stakeholders,” and that the bank’s top executives be, in his view, appropriately punished.

However, reports Financial Times, Ben-Artzi has clarified that he hasn’t been able to reject all of his award. Parts of the total $US8.25 million were claimed by his ex-wife and lawyer, and other experts he worked with on SEC submissions.

Read the full FT story, and click here to find out more about current regulatory gaps in the U.S.

Also check out:

Are firms responsible for advisor misconduct?

What to do when clients break market rules

Regulatory tips from IIROC and FINRA