SEC Whistleblower Blog
SEC Chairman Urges Lawmakers to Delay Changes
December 21, 2011
Marketwatch.com reported last week that Mary Schapiro, the Chairman of the Securities and Exchange Commission (“SEC”), sent a letter to Representative Barney Frank, Democrat from Massachusetts, asking that lawmakers hold off on making changes to the new whistleblower program until there is proof that it is causing problems. ...
SEC Chairman Seeks Higher Fines to Deter Violators
December 14, 2011
The Chairman of the Securities and Exchange Commission (“SEC”), Mary Schapiro, recently sent a letter to Senators Jack Reed (D-RI) and Mike Crapo (R-ID), ranking members of the Senate banking committee’s subcommittee on securities, requesting an increase in the SEC’s authority to obtain monetary penalties from offenders. ...
Tax Court Protects Rights of IRS Whistleblowers to Retain Anonymity
December 13, 2011
In a decision that will be welcomed by Internal Revenue Service (“IRS”) whistleblowers, the United States Tax Court ruled on Thursday in Whistleblower 14106-10W v. Commissioner of Internal Revenue that the court would allow individuals reporting serious tax underpayments under U.S.C. § 7623 to appeal IRS award determinations...
New Survey Finds Most Workers Willing but Ignorant of Dodd-Frank
December 12, 2011
A newly published survey asked over 1,000 Americans questions regarding the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”). As part of its comprehensive program to ensure corporate accountability and compliance, the Dodd-Frank Act created important new whistleblower protections and incentive...
Cohen of Bloomberg News Blasts Rep. Kingston Over CFTC Cuts
December 2, 2011
William D. Cohen of Bloomberg News wrote a scathing op-ed piece earlier this week, lambasting what he described as the “stealthy efforts” of Congressman Jack Kingston to limit funding to the Commodity Futures Trading Commission (“CFTC”). Rep. Kingston, a Republican from Georgia and influential member of the House...
Whistleblowers Seek First Dodd-Frank SEC Bounties in Banking Cases
November 16, 2011
The Wall Street Journal published an article today about whistleblower rewards under the new provisions enacted under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). In After Tip, the Claim For Reward, the Journal writes about Bank of New York Mellon Corp. (“BNY”) and State Street Corp., two...
Littler Mendelson Releases Survey on Executive Reaction to Dodd-Frank
November 15, 2011
The law firm of Littler Mendelson, the largest U.S.-based law firm exclusively devoted to representing management in labor and employment law matters, released the results of a study on November 14, 2011, surveying the reactions of senior executives at various publicly traded or highly regulated companies to the new Dodd-Frank...
Assistant Attorney General Breuer Pledges to Oppose Any Weakening of FCPA
November 11, 2011
Assistant U.S. Attorney General Lanny Breuer spoke at the 26th National Conference on the Foreign Corrupt Practices Act on Tuesday, and made it clear that he would vehemently oppose any efforts made weaken the FCPA. The FCPA prohibits companies registered with the SEC from paying bribes to foreign officials, and FCPA...
SEC Reports Its Most Prolific Year Ever For FY2011
November 10, 2011
The SEC reported yesterday that it filed a record 735 enforcement actions in the fiscal year ending on September 30, 2011. In doing so, the Commission said in a press release, it recovered more than $2.8 billion in penalties and disgorgement. This may be due in part to the reorganization the Commission underwent in 2009 and...
Rajaratnam Ordered to Pay Record Financial Penalty in Insider Trading Case
November 10, 2011
United States District Court Judge Jed S. Rakoff on Tuesday ordered a record financial penalty of $92.8 million against billionaire hedge fund manager Raj Rajaratnam, according to this SEC press release. According to Robert Khuzami, director of the SEC’s Division of Enforcement, the penalty imposed by Judge Rakoff – the...
