SEC Whistleblower Blog

SDNY Reaffirms Dodd-Frank Protection of Internal Whistleblowers

November 20, 2013
Securities and financial services whistleblowers achieved another important victory in late October 2013 when the U.S. District Court for the Southern District of New York (“SDNY”) held in Rosenblum v. Thomson Reuters (Markets) LLC that the anti-retaliation provision of the Dodd-Frank Wall Street Reform and Consumer Protection...

SEC Official Discusses New Financial Reporting and Audit Task Force

October 29, 2013
The Securities and Exchange Commission (“SEC”) Enforcement Co-Director, Andrew Ceresney, spoke at a conference hosted by the American Law Institute (“ALI”) on September 19, 2013, entitled “Accountants’ Liability: Managing Risks in A Changing Environment.”  As Arian June wrote in an article for Law360, Ceresney described several...

Sixth Federal Court Finds Internal Reports Protected Under Dodd-Frank Whistleblower Statute

October 24, 2013
A sixth federal court has held that whistleblowers who make internal reports of securities violations are covered by the whistleblower protection provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”) because such internal reports constitute “protected activity” under Dodd-Frank. In...

SEC Issues $14 Million Award to Anonymous Whistleblower

October 2, 2013
The Securities and Exchange Commission ("SEC") announced on Tuesday, October 1, 2013, that it would award more than $14 million to a whistleblower who provided information that led to the recovery of "substantial investor funds."  In order to best protect the whistleblower's anonymity, neither the name of the company nor the...

SEC Whistleblower Chief Discusses "Bounty Awards" and Retaliation in Wall Street Journal's Risk and Compliance Blog

September 25, 2013
The head of the Securities and Exchange Commission’s (“SEC’s”) Office of the Whistleblower, Sean McKessy, spoke with the Wall Street Journal’s Risk and Compliance blog on September 24, 2013, to discuss the pace and size of whistleblower awards under the SEC's new “bounty” program and his agency’s role in enforcing the...

SEC's Stephen Cohen Touts SEC Whistleblower Office at Corporate Whistleblowing Forum

September 17, 2013
Stephen Cohen, an associate director of the Enforcement Division of the Securities and Exchange Commission (“SEC”), commented last week that companies should be trying to show off the quality of their internal compliance programs to dissuade the SEC from taking enforcement actions against them.  The comments were made at the...

SEC Begins Disbursement of Second Whistleblower Award

September 9, 2013
The U.S. Securities and Exchange Commission (“SEC”) announced on Friday, August 30, 2013, that its second-ever whistleblower award, to be split among three anonymous claimants, will amount to $125,000, for their tip exposing a sham investment fund.  The fund had already raised $1.7 million before the operation was shut down as...

SEC Whistleblower Chief Discusses Recent Legal Developments

August 30, 2013
The Chief of the Office of the Whistleblower at the Securities and Exchange Commission (“SEC”), Sean McKessy, was interviewed by Law360 last week about the whistleblower office’s bounty awards, recent court rulings on the scope of Dodd-Frank’s anti-retaliation provision and other topics related to the developing law surrounding...

Financial Fraud Whistleblowers Limited by Fifth Circuit Ruling

July 22, 2013
Whistleblowers suffered a defeat this week in a decision made the U.S. Court of Appeals for the Fifth Circuit in the case of Asadi v. G.E. Energy (USA), L.L.C. We wrote about this case just over a year ago, after the U.S. District Court for the Southern District of Texas dismissed Khaled Asadi’s case after finding that the...

New SEC Enforcement Division Directors to Maintain Focus on Fraud

July 12, 2013
The new co-directors of the Enforcement Division of the U.S. Securities and Exchange Commission (“SEC”), George Canellos and Andrew Ceresney, were featured in an article in the National Law Journal earlier this week.  The article noted that while the agency has “limited resources and more responsibility than the SEC has ever...

Pages