You Can Blow the Whistle too According to the SEC

Posted by Ernest E. Badway on February 28, 2013

The SEC's Division of Enforcement is performing well according to its departing director.

The soon to be ex-Enforcement Director credits this strength to his re-organization of the Division based on expertise and the tips received from whistleblowers, among other things.  The Dodd-Frank Act was the impetus for the SEC’s whistleblower program, and the SEC received over 3,000 tips in a year.  Many of these tips relate to disclosure and financial fraud; market manipulation; as well as offering fraud, among other things.  The SEC has also found that these whistleblower complaints come from all over the country and world.

In short, the SEC seems to be waiting for you to blow the “whistle.”

Whistleling While You Work Seems to Be Helping the SEC

Posted by Ernest E. Badway on February 28, 2013

The SEC's Whistleblower Office received 3,001 tips last year, involving a number of different areas and from all over the United States and the world. 

The SEC views the program as a valuable tool, and believes the "bounty program"-- the payment for these tips-- has enhanced the disclosure and its usefulness.  This year even saw the first award to a tipster. 

We can hear the music from here. . .

The SEC is Watching You ... Informant Retaliation Seems to Be on the Rise

Posted by Ernest E. Badway on January 18, 2013

The SEC is strongly reviewing if corporations are ensuring that informants are protected.

The SEC will not permit a retaliation.  The SEC is seeking to determine if corporations are retailing against individual persons who submit internal complaints.  As one indication, the SEC is reviewing personnel files to ensure that there is no negative reference to these individuals who have informed on corporate misconduct. 

In sum, corporations need to protect themselves from this type of review.  Reporting corporate misconduct is serious enough without then being accused of retaliation.  Avoid it like the plague!!