Business Insurance reported late last week that the Securities and Exchange Commission will award $5-6 million to a whistleblower who provided information on securities violations that would have been “nearly impossible” for the SEC to detect on its own. Such an award would be the third larges award ever granted to a whistleblower by the
SEC: Confidentiality Agreements Cannot Impede Whistleblowers
The SEC’s Office of the Whistleblower’s top priority going into 2016 will be to assess company confidentiality agreements for compliance with Rule 21-F-17(a). Rule 21F-17(a) provides that no person may take any action to impede an individual from reporting information about wrongdoing to the SEC. The OWB’s primary focus in enforcing Rule 21-F-17(a) has been
Whistleblower Tips Rise Again in 2015
The Securities and Exchange Commission released its 2015 Annual Report on its Whistleblower Program this week and announced another rise in the number of whistleblower tips that it received. The SEC reported receiving 3,923 tips during its 2015 Fiscal Year, which is up from 3,620 in 2014 (as we previously reported), and up over
What Does The “E” In Email Mean Redux
I recently blogged about the meaning of the “E” in email. For a further discussion of the dangers associated with email, you can listen to this podcast. The moral to the story is think long and hard before you hit that send button. Enjoy!
The SEC Cracks Down on Anti-Whistleblower Agreements
Around this time last year, the Securities and Exchange Commission’s Office of the Whistleblower warned lawyers that they may be disciplined for drafting contracts to incentivize whistleblowers to not bring alleged company wrongdoing to the SEC’s attention. It appears the SEC is beginning to make good on its threat. Last week, the SEC resolved
Forget Including A Bar Of Whistleblower Tips In Settlement Agreements
FINRA recently warned that firms could face disciplinary action if they enter into settlement agreements that bar customers or former employees from reporting wrongdoing at the firm. Although FINRA recognized that confidentiality provisions were acceptable, it noted that they have to be written in such a way to authorize the individual to contact FINRA or
What To Expect In 2014 From The SEC’s Enforcement Division
Now that 2014 is here, it is a good idea to understand what the Enforcement Division might focus on this year. In a recent article that appeared in the BNA, David Marder, a partner with Robins, Kaplan, Miller & Ciresi identified fifteen things to expect in the coming year.
The fifteen things he noted to
You Can Blow the Whistle too According to the SEC
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
Whistleling While You Work Seems to Be Helping the SEC
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
The SEC is Watching You … Informant Retaliation Seems to Be on the Rise
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