Whistleblowing

Whistleblowers Are Poised to Collect $100 Million

After his warnings about Bernard Madoff’s Ponzi scheme went ignored for years, Harry Markopolos urged U.S. regulators to encourage tipsters. Now, the forensic accountant and a team he put together are in position to benefit from those new incentives.

U.S. government settlements with State Street Corp. and Bank of New York Mellon Corp. could produce a windfall for three former employees who blew the whistle on the banks’ alleged mistreatment of foreign-currency-trading clients. Mr. Markopolos, who assembled the group and advised them, could reap a slice of any payouts awarded to the whistleblowers, according to people familiar with the matter.

Those awards could exceed a combined $100 million, the largest such awards on record, according to an analysis by The Wall Street Journal.