Corporate Whistleblowers

Corporate Whistleblowers are the single most important resource for detecting and preventing fraud. You can find the latest news, events, cases of corporate crime.

Securities and Exchange Commission

In announcing its first two whistleblower awards of the year, the Securities and Exchange Commission notes:

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.
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The business writers at The New York Times promise a bump in white-collar crime news in 2020. At the same time, a series of reports raise concerns about oversight of the accounting industry.

From The Times:

Goldman Sachs is negotiating with the Justice Department to pay a penalty of about $2 billion for its role in the 1Malaysia Development Berhad scandal, known as 1MDB.


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We still hear a lot of talk about the reliability of second-hand information in relation to the Trump whistleblower. In November, a study of data from whistleblower reports filed at more than 1,000 companies found it very reliable. Secondhand reports are “47.7% more likely than firsthand reports to be substantiated by management, which suggests that management views many secondhand reports as credible.“
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Corporate compliance programs aim to make sure a company obeys laws and regulations. One problem with compliance — companies can sometimes make more breaking the rules than following them. And they are complicated. So, they mount compliance programs for show and look the other way. That’s where whistleblowers come in. Or go out. Some internal reporting programs work against whistleblowers, so insiders choose to report wrongdoing to a government agency or the press.
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Two whistleblowers are scheduled to testify on Capitol Hill this morning. Both hearings begin at 10 a.m.and will be broadcast live.

Coast Guard Lt. Cmdr. Kimberly Young-McLear will testify about retaliation she faced after complaining about bullying and harassment at the Coast Guard Academy.  In 2018, the Department of Homeland Security inspector general confirmed her complaints. From the New London Day. (The academy is based in the Connecticut city.)

Young-McLear says she endured four years of abuse at the academy, including her supervisor making belittling comments toward her, using her as a scapegoat and undermining her work. She said she exhausted the complaint process, making reports to her Coast Guard chain of command, including senior leadership at the academy and the commandant, and through the Coast Guard and Department of Homeland Security’s civil rights reporting processes.

“They all failed me. The reporting systems that we have in place failed, and I was retaliated against,” said Young-McLear, who left the academy this summer for a cybersecurity fellowship under the Department of Homeland Security.

Coast Guard officials say they have addressed Young-McLear’s concerns but problems at the Coast Guard persist.


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