Tag: Whistleblowers

Whistleblower Incentives Strengthen Corporate Compliance Programs

They incentivize internal whistleblowing. Exchange Act Rule 21F-6(a)(4) authorizes an increase in a whistleblower’s award percentage for reporting the securities violation through internal, legal, or compliance procedures before reporting it to the SEC. Exchange Act Rule 21F-4(c)(3), meanwhile, enables a whistleblower to get an award for information disclosed by their employer to the SEC where the whistleblower’s internal disclosure prompted…

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SEC Awards More Than $37 Million to a Whistleblower

The Securities and Exchange Commission today announced an award of more than $37 million to a whistleblower who provided information not previously known to the SEC and which significantly contributed to a successful enforcement action. The whistleblower also met with Enforcement staff and identified potential witnesses and documents, which conserved staff time and resources. Source: SEC Awards More Than $37…

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Government Whistleblower and Compliance Programs Share Same Goals

Whistleblower programs and companies’ internal compliance processes aren’t in competition for information from whistleblowers. Counsel representing individuals who participate in government whistleblower programs understand that such a conclusion has it all wrong. *** According to the Securities and Exchange Commission’s fiscal year 2017 annual report to Congress on its whistleblower program, about 62% of award recipients from fiscal years 2012…

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Targeting white-collar crime, Justice Dept. seeks more whistleblowers – The Washington Post

Officials said they are modeling the new program after similar ones in two other federal agencies, the Securities and Exchange Commission and the Commodity Futures Trading Commission. The SEC received 18,000 tips in fiscal 2023, up nearly 50 percent from a year earlier, and paid a record $600 million to 68 whistleblowers. The CFTC received 1,530 tips and paid seven…

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AIG Fends Off Appeal From Former Lawyer in Whistleblower Case

The former head of AIG’s legal operations center failed to show he reasonably believed he was reporting securities violations, dooming his bid to revive a whistleblower suit, a federal appeals court said Thursday. The worker lost his job a few months after AIG’s compliance team finished investigating his conflict-of-interest concerns. But a reasonable jury couldn’t conclude the lawyer thought he…

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Government Whistleblower Programs Undermine Compliance Culture

Are these whistleblower rewards programs a good thing? From the perspective of enforcement agencies, the draw is clear: more tips, more cases, more enforcement, and more fines. From the perspective of an individual whistleblower, the benefit of these programs is unquestionable. They’re a financial bonanza. A potential reward of millions, and even tens of millions, of dollars is a powerful…

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DOJ Tries to Balance Whistleblower Pilot With Company Compliance

Justice Department officials developing a whistleblower policy to pay white-collar tipsters are consulting with other agencies and outside attorneys to fill gaps and address concerns, said one of the initiative’s planners Thursday. “We hope to make announcements soon,” said Molly Moeser, the acting chief of DOJ’s money laundering and assets recovery office, which has played a central role in building…

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