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Whistleblower News From The Inside -- October 21, 2016

Posted  October 21, 2016

By the C|C Whistleblower Lawyer Team

Voices from Wells Fargo: ‘I thought I was having a heart attack’ — The scandal at Wells Fargo over the creation of unauthorized accounts shook its customers’ faith in the bank, but it took an even sharper toll on the company’s workers. A number of them say they faced a stark choice: create new accounts by any means possible, or risk being fired for falling short of their sales goals.  NYT

Eric Havian discusses whistleblower programs and building a whistleblower practice – Eric Havian, of Constantine Cannon, discusses the strengths and weaknesses of various whistleblower awards programs, and says that an across the board whistleblower program for corporate violations of law “would be an instant success…the presumption should be that the model we see working so well in government contracting, in securities violations and even with the IRS, it could work in any industry.”  Corporate Crime Reporter

Food fraud hurts your wallet, makes you sick — From olive oil that has been cut with cheaper oil to honey infused with banned antibiotics and ground coffee contaminated with corn and sawdust, the food you eat is ripe for fraud, and in some cases, can make you sick.  According to Michigan State University’s Food Fraud Initiative, food fraud costs consumers $30 billion to $40 billion a year worldwide, from dining out to items purchased at the grocery store.   CNBC

‘Diva of Distressed’ Tilton to face SEC fraud trial — Financier Lynn Tilton, the founder of New York-based Patriarch Partners who is known as the “Diva of Distressed” for taking over troubled companies, is set to go on trial next week on charges she defrauded investors by hiding the poor performance of assets underlying three $2.5 billion debt funds.  The SEC is seeking to force Tilton and Patriarch to pay the agency at least $200 million for defrauding investors.  Reuters

NY announces $4.3m settlement with special education school — Attorney General Eric T. Schneiderman, Acting Tax Commissioner Nonie Manion and Comptroller Thomas P. DiNapoli announced a settlement with K3 Learning, Inc. and its president and owner Michael C. Koffler, together with his sons, Brian and Daniel Koffler, and his special education preschool, Sunshine Development School, for overcharging the State of New York for services rendered by SDS and for failing to pay millions in personal and corporate income tax.  NYAG

Denmark’s Data Protection Agency publishes Whistleblower Notification Form – The form is meant for use by accounting firms subject to new employee whistleblowing rules, including requiring accounting firms to introduce mandatory whistleblowing programs and create a mechanism to allow employees to report actual and potential violations of the law through channels separate from the traditional management structure.  BNA