CALLING ALL FCPA WHISTLEBLOWERS — THE CFTC WANTS YOU!
If you have information on Foreign Corrupt Practices Act (FCPA) violations in the commodities or derivatives markets, the Commodity Futures Trading Commission (CFTC) wants to hear from you. The agency made this clear in a recently-issued CFTC "Whistleblower Alert" calling on all FCPA whistleblowers to step forward and report what they know.
The agency even dangled the potential for monetary rewards for those...
Blowing the Whistle on Data Breaches and Cybersecurity Flaws
With increasing dependence on technology, cybersecurity has emerged as a critical issue for customers, investors, and government regulators. Data breaches and other cybersecurity incidents can have devastating effects. In 2018, the Council of Economic Advisers estimated that malicious cyber activity cost the U.S. economy up to $109 billion dollars in 2016 alone.
Typically, the public only learns of such flaws and...
The SEC made a $3 million whistleblower award to be shared by multiple anonymous whistleblowers who jointly submitted a tip to the SEC Whistleblower Program regarding their employer. The tip, reporting an alleged securities law violation that impacted retail investors, led to a successful enforcement action by the SEC. The SEC also noted that the whistleblowers had undertaken significant efforts to report the issues internally and seek to have them corrected. SEC
SEC Gives First Ever Whistleblower Award Under Rule That Incentivizes Internal Reporting
On May 24, the Securities & Exchange Commission announced that it awarded over $4.5 million to a whistleblower who both reported allegations of securities fraud at a company internally and shared this information with the SEC. This is the first time since the creation of its whistleblower rewards program that the SEC awards a claimant under Rule 21-F4(c)(3) of the Exchange Act, a provision designed to encourage...
The SEC announced an award of more than $4.5 million to an anonymous whistleblower. The whistleblower sent an anonymous tip to the company alleging significant wrongdoing, and also submitted the same information to the SEC within 120 days of reporting it to the company. The company opened an internal investigation as a result of the whistleblower's tip, and subsequently self-reported to the SEC and another agency, resulting in a recovery by the government. SEC
Ted Siedle is the rare SEC whistleblower who allows us to put a face to the name.
After two years of waiting, the recipient of what was, when first announced, the highest SEC whistleblower award ever was finally paid. This week, he received his share of a $50 million reward to two whistleblowers for exposing conflicts of interest at JP Morgan that led to a $257 million fine by the SEC. Last year, the whistleblower also received $30 million from the CFTC, that agency’s largest award ever, for...
On Monday, the Commodity Futures Trading Commission (CFTC) announced a whistleblower award of roughly $1.5 million. It is the latest in a string of whistleblower awards from an agency that has made it very clear that after a slow start in implementing its whistleblower program it is finally open for whistleblower business. CFTC Enforcement Director James McDonald could not have been more direct on this point:...
DOJ to Corporate America — Embrace the Whistleblower
In a clear push to companies to tighten up their internal compliance efforts, the DOJ Criminal Division recently announced a remake of the agency's guidelines for corporate compliance programs. The document, titled "The Evaluation of Corporate Compliance Programs," updates a previous version of the guidelines and is designed to provide more insight and context into the steps DOJ expects companies to take to ensure...
The Latest on Cryptocurrency, Offshore Tax Avoidance and Money-Laundering, and Whistleblowing: A Report from OffshoreAlert Miami 2019
“A diverse collection of the hunters and the hunted.”
That’s how the Wall Street Journal described the OffshoreAlert Conference in 2009. The 2019 conference was no different, bringing together those who work in the offshore industry, the government enforcers who try to stop the unscrupulous among them, and the asset recovery professionals who pursue lost funds. Alongside them were whistleblowers and their...
Two JP Morgan Whistleblowers Awarded Third-Largest Single SEC Award
Earlier this week, the U.S. Securities & Exchange Commission announced that two whistleblowers were awarded a combined $50 million for reporting securities fraud at JP Morgan. The anonymous whistleblowers, one of whom was described by his attorney as a “JP Morgan executive,” triggered the agency’s investigation and enforcement against the bank for failing to disclose to clients that the bank preferred to invest...