Whistleblowers come in all shapes and sizes. Some they write movies about, gaining fame (and sometimes fortune) in the process. Others go in the opposite direction, victimized for their temerity; for daring to sound the alarm when something rubs against their moral compass. Still others speak their truth quietly, just getting the job done without fanfare or rebuke so they can sleep better at night. Regardless...
Better Markets Heralds SEC Whistleblower Program as a Model To Follow
Posted 12/14/23
Better Markets-- a nonpartisan nonprofit promoting the public interest in financial reform and the economy -- just released (on December 7) a report on the SEC Whistleblower Program, touting it as a $6 billion success story. In announcing its findings, Better Markets did not spare its high praise for the whistleblower program, highlighting "just how critical [it] has been as a law enforcement tool, allowing the SEC...
This week's Department of Justice (DOJ) Catch of the Week goes to King Kong Tools GmbH & Co KG. On Wednesday (November 29), the German-based supplier of recycling, forestry, construction, and agricultural equipment, along with its American subsidiary, agreed to pay $1.9 million to settle DOJ charges of violating the False Claims Act through customs fraud. More specifically, the government alleged King Kong...
Yesterday (October 12), the Commodity Futures Trading Commission (CFTC) announced an $18 million whistleblower award. The agency did not disclose the identity of the whistleblower or the associated enforcement action. It never does. The CFTC maintains strict confidentiality over its whistleblowers. All we know is the whistleblower "provided detailed information and assistance," that "was significant in amount...
SEC Charges yet Another Company for Violating Whistleblower Protection Rule
Posted 10/6/23
On September 29, the Securities and Exchange Commission (SEC) announced that New York-based investment adviser D. E. Shaw & Co. agreed to pay $10 million to settle charges of violating the SEC's Whistleblower Protection Rule. It is the third SEC settlement in September for violating the rule, which prohibits a company from taking any steps to interfere with a whistleblower's efforts or incentives to report potential...
SEC Takes Down Yet Another Company Trying to Silence Whistleblowers
Posted 09/28/23
It was only a few weeks ago that the Securities and Exchange Commission (SEC) slapped down Monolith Resources for forcing departing employees to sign separation agreements making them waive their right to any whistleblower rewards for reporting fraud to the government. In announcing that enforcement action, the SEC stressed the need for companies to appreciate that taking any steps to silence whistleblowers is...
SEC Takes a Stand Against Companies Trying to Silence Whistleblowers - AGAIN!
Posted 09/19/23
Last Friday (September 8), Monolith Resources agreed to pay $225,000 to settle Securities and Exchange Commission (SEC) charges of using employee separation agreements that violated the SEC’s whistleblower protection rules. It is just the latest in a continuous stream of SEC enforcement actions against companies trying to silence whistleblowers. Monolith is a clean technology company headquartered in Lincoln,...
3M to Pay $6.5 Million for Foreign Bribery Charges
Posted 08/29/23
On Friday (August 25), the Securities and Exchange Commission (SEC) announced that Minnesota-based global manufacturer 3M Company agreed to pay $6.5 million to settle SEC charges of violating the Foreign Corrupt Practices Act (FCPA). According to the SEC Order finalizing the settlement, the SEC found that employees of 3M's wholly-owned Chinese subsidiary provided improper consideration to Chinese officials of...
Grassley Leads Bipartisan Effort to Shore Up CFTC Whistleblower Program
Posted 07/28/23
On Wednesday (July 26), Senator Chuck Grassley (R-Iowa) announced his bipartisan charge to adopt legislation to strengthen the Commodity Futures Trading Commission (CFTC) Whistleblower Program. This is the program that both encourages and protects individuals for coming forward with information relating to potential violations of the Commodities Exchange Act and rewards them with up to 30 percent of any government...