100% CONFIDENTIAL SUPPORT:

Is It Time to Develop a Whistleblower Program for the Mortgage Industry?

Share This Post

whistleblower

An up to $5 million offer will be rewarded to whistleblowers for Ontario?s securities regulator newly launched whistleblower program. The program?s aim is to lead to the prosecution of fraudsters, fraud being one of the biggest reasons for business losses of billions of dollars a year. With this in the works, is it time for the mortgage industry to launch a whistleblower program as well?

The answer to this is, of course, not as easy as the question itself although the allure of the benefits from the Ontario Securities Commission isn?t easy to ignore either. The program gives initiatives to whistleblowers and encourages people to let the commission know of any market manipulation, potential instances of fraud, and other unsavoury activities concerning the securities industry.

The Ontario Securities Commission Whistleblower Program

An incentive of up to $5 million is being offered by the commission for truly valuable information. Besides the cash incentive, the whistleblower will also be extended some protection ? a first in Canada!

It should be noted that similar programs have been launched in the past but was met with little success. Nevertheless, this program by the Ontario Securities Commission is definitely a step in the right direction, so the question is?

Should This Also Be Applied to the Mortgage Sector?

As you may have already guessed, the answer to this question will not be a straight one as well. Tip lines are known to have a not-so-high success rate.

Butler Mortgage?s broker Ron Butler was quoted by MortgageBrokerNews.ca to have said the same about success rates for whistleblower programs. He cited similar programs in the past that are good intentions, but did not garner good results. He further cited the US?s SEC as an example, saying that although it is our neighbour?s longest-lived and biggest financial services tip line, the failures far outweigh the few successes. The reason for this is because some tips have been ignored by the organization if the person being reported is well-connected or has a great reputation. Bernie Madoff has been reported 5 times by the same securities analyst, but the SEC repeatedly ignored all 5 letters/reports. The reason being Bernie Madoff is a well-connected individual.

Tip lines can become problematic because separating false tips from real ones can be quite challenging. Former employees and terminated agents are known to send in fraudulent tips to wreak havoc on the life of someone they?re holding a grudge against. It is instances like this that make tip lines not very reliable more so if mismanaged.

Perhaps the to get the best use out of tip lines, it should be monitored by professionals who know their way in getting the truth out of every situation. Private investigation firms with decades of experience and a proven track record could be utilized, but that will, of course, cost money as every report or letter will have to be addressed.

With everything said, having a whistleblower program is only as good as its implementation. Seek a professional to handle yours should you decide to implement one in your organization. Contact us at Haywood Hunt for an obligation-free initial consultation to know more about how private investigators can help you with your whistleblower program.

 

More To Explore

OSINT
Uncategorized

The Power of Open Source Intelligence Explained

The presence of easily accessible public records is one of the most crucial tools for private investigators in the digital era. While the information available to the public hasn’t significantly changed, the process of obtaining it has undergone a remarkable transformation. In our latest blog post we explain the power of open source intelligence and public records.

canada-scams
Blog

4 of the Top Scams in Canada Right Now and How to Avoid Them

The rise of the internet and technology has not only made our daily activities more convenient but has also opened up opportunities for scammers. Fraudsters are always coming up with new ways to trick their targets, and sadly, they are often successful. A recent study by CPA Canada’s annual fraud survey revealed that 46% of respondents had fallen victim to financial fraud at some point in their lives. This blog post outlines some of the scams that are currently taking the greatest financial toll on Canadians and offers advice on how to protect yourself.