SEC Whistleblower Blog

Whistleblower Reporting in Futures Industry Slow to Materialize

October 1, 2012
Whistleblowers have been slow to catch on to the new whistleblower program at the Commodity Futures Trading Commission (“CFTC”), Thomson Reuters reported last week.  The CFTC and the Securities and Exchange Commission (“SEC”) were both required to set up whistleblower programs under the 2010 Dodd-Frank Wall Street Reform and...

SEC’s First Whistleblower Award An Encouraging Sign for Whistleblowers

August 23, 2012
A securities fraud whistleblower will receive nearly $50,000 from the U.S. Securities and Exchange Commission (“SEC”), the agency announced on Tuesday, August 21, 2012.  This represents the first payout under the new bounty provisions of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”).  The SEC...

Dodd-Frank Whistleblower Provisions Not Extended to American Working Abroad

July 6, 2012
On June 28, 2012, the U.S. District Court for the Southern District of Texas dismissed a whistleblower lawsuit brought by a former employee of G.E. Energy (“GE”) who worked outside of the United States. In Asadi v. G.E. Energy (USA), LLC, Khaled Asadi alleged that GE terminated him in retaliation for reports he made to his...

Municipal Bond Regulations Expand Reach of SEC Whistleblower Program

June 6, 2012
Beginning in August 2012, federal regulators will be enforcing new regulations requiring greater oversight of the municipal bond market and the underwriters of municipal securities, according to a press release issued by the Municipal Securities Rulemaking Board (“MSRB”) this month.  A recent New York Times article described...

Whistleblower Participation Sought to Bolster Financial Fraud Task Force

May 31, 2012
A task force created by the Obama Administration in November 2009 to help hold accountable those responsible for the latest financial meltdown recently made a formal call to whistleblowers for information.  The Residential Mortgage-Backed Securities (“RMBS”) Working Group – an arm of the Financial Fraud Enforcement Task Force...

SEC Whistleblower Program Attracting High-Quality Tips, Director Says

May 1, 2012
In an interview with Thomson Reuters last Friday, the Director of the SEC Enforcement Division, Robert Khuzami, stated that the quality of tips being submitted to the SEC’s new Whistleblower Program has improved in recent months, probably due in part to more whistleblowers being represented by lawyers.  The SEC Whistleblower ...

Confidentiality Agreements Rendered Unenforceable by SEC Whistleblower Rules

April 24, 2012
The SEC Whistleblower Program rules provide a number of protections against retaliation for employees who blow the whistle on securities violations. One particularly important protection is found in Rule 240.21F-17(a), which provides as follows: No person may take any action to impede an individual from communicating directly...

SEC and CFTC Whistleblower Chiefs Discuss Program Progress

April 9, 2012
The Project on Government Oversight (“POGO”) Blog recently wrote about an interview with two key whistleblower officials.  The website Securities Docket recently hosted a webcast with Sean McKessy, the Chief of the Securities and Exchange Commission’s (“SEC’s”) Office of the Whistleblower (“OWB”), and Vincente Martinez,...

SEC Officials Trumpet Value of Whistleblowers at PLI CLE

March 21, 2012
Securities and Exchange Commission (“SEC”) Chairman, Mary L. Schapiro, and Chief of the SEC’s Office of the Whistleblower, Sean McKessy, recently spoke before a Practicing Law Institute seminar entitled “The SEC Speaks in 2012.”  Both officials trumpeted the success of the new whistleblower program and the value that...

SEC Officials Issue Stern Warning to Compliance Officers

March 21, 2012
Chief compliance officers (“CCOs”) received some stern warnings from Securities and Exchange Commission (“SEC”) officials at the Investment Adviser Association’s annual compliance conference, held earlier this month in Arlington, Virginia.  The website AdviserOne reported that Robert Plaze, deputy director of the SEC’s Division...

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