Dodd-Frank added Exchange Act Section 21F(g)(5) and requires that SEC’s Office of the Whistleblower to report to Congress annually on the whistleblower program. It’s due each October 30. I’m sure the SEC wanted to be in compliance, so they released the first annual report on the Dodd-Frank Whistleblower program (.pdf). Section 922 of the Dodd-Frank [...]
Archive | Whistleblower RSS feed for this section
A Weekend of Whistleblowing
Friday marked the effective date of the SEC’s Whistlelower Rule. Lucky whistleblowers can now cash in with bounties of up to 30% of the government’s recovery when cases involve in excess of $1 million. The question I have is whether there was spike in tips submitted over the weekend? The SEC is trying to make [...]
The New SEC Whistleblower Rule
In a blow to the efforts of internal compliance, the SEC will let corporate whistle-blowers collect a percentage of penalties when they report financial wrongdoing, even when they bypass companies’ internal complaint systems. “For an agency with limited resources like the SEC, it is critical to be able to leverage the resources of people who [...]
Will Cash Incentives for Whistleblowing Undermine Compliance Programs?
Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides an expanded whistleblower program that allows the whistleblower to get part of the money paid to the SEC for the violation. After several years of encouraging the development of internal complaint hotlines and compliance programs, Congress seems to now be encouraging a [...]
Corporate Compliance after Dodd-Frank: Dealing with Whistleblower Bounties
Securities Docket produced a webcast “Corporate Compliance after Dodd-Frank: One Voice; How Many Masters?” that focused on the SEC’s proposed new whistleblower rules and their implications for internal controls and compliance programs, investigations, self-reporting incentives and employer/employee relations, including executive compensation and employee reporting responsibilities. The panelists: Byron Egan, Partner Jackson Walker L.L.P. Jeffrey Sone, [...]
Proposed Rules for Implementing the Whistleblower Provisions From Dodd-Frank
The SEC has released the text of its proposed new rules for implementing the whistleblower provisions of Section 21F of the Securities Exchange Act of 1934: Release No. 34-63237. In fashioning these proposed rules, the Commission has considered and weighed a number of potentially competing interests that are presented in implementing the statute. Among them [...]
Save Your Company, Save Yourself
What happens when you have a business disaster on your resume? Maybe listing an Enron or WorldCom would not be so bad. Those companies are big enough that you may not be tainted by the corporate fraud. Unless you ended up in handcuffs. As the company gets smaller, you’re more likely to get caught in [...]
How Does Your Hotline Compare?
Does your hotline ring off the hook with complaints? Is it silent? Are the complaints mostly that the employee thinks his boss is a jerk? The Network and BDO Consulting published their 2010 Corporate Governance and Compliance Hotline Benchmarking Report. The 2010 report provides an analysis of compilation of more than 500,000 reports from over [...]
Who Blows the Whistle on Corporate Fraud?
It takes a village. Alexander Dyck, Adair Morse, and Luigi Zingales found that fraud detection does not rely on standard corporate governance actors. Instead they found that employees, short sellers and analysts are the top sources in uncovering corporate fraud. The three researchers studied reported fraud cases between 1996 and 2004 for U.S. companies with [...]
SOX Whistleblower Protections at Mutual Fund Companies
We know that Sarbanes-Oxley offers protections to employees at public companies, but does it also protect employees at mutual fund companies? Yes. At least according to Judge Woodcock of the Massachusetts U.S. District Court. The Employees The decision is for two cases that were combined because of the common defendant. According to the decision, Jackie [...]
Social Media
My social media policies database is available to you.
Affilate
This website uses the Canvas Wordpress theme from WooThemes. (affiliate link)
