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.

And when they do, companies are sometimes forced to assess the efficacy of their compliance programs.  At Danske Bank, the cost of doing so may lead to layoffs. Bank employees are being offered buy-outs, with managers of the international bank citing rising compliance costs. From Bloomberg.

 Danske Bank A/S is offering 2,000 of its employees in Denmark the option of stepping down as the cost of adapting to a world with stricter regulations and negative interest rates just keeps growing…

Danske has acknowledged its costs are still rising, following a vast Estonian dirty-money scandal. In an interview in Stockholm, the chief executive of Danske in Sweden, Johanna Norberg, said “the peak” level of investment to meet anti-money laundering requirements has “not yet been reached.”
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This morning, the U.S. Supreme Court heard oral arguments in State Farm Fire and Casualty Company v. U.S. ex rel. Rigsby. Having suffered a 758-thousand-dollar jury verdict for defrauding the Government following Hurricane Katrina, State Farm is now attempting judicial gymnastics to avoid paying the judgment.  State Farm is asking the Supreme Court to automatically dismiss False Claims Act cases where whistleblowers violate the FCA’s seal provision (31 U.S.C.S. § 3730(b)(2)), instead of using a balancing test—which courts in the United States have historically employed when seal violations occur—to determine the appropriate course of action.

Justice Elena Kagan honed in on a very important question during today’s argument, “…. given that the government is the beneficiary of this [seal] provision, why shouldn’t we give very significant discretion to the government?”
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Press Release
October 31, 2016

On Tuesday November 1, 2016, The U.S. Supreme Court will hear oral argument in State Farm Fire and Casualty Company v. U.S. ex rel. Rigsby. Having suffered a 758-thousand-dollar jury verdict for defrauding the Government following Hurricane Katrina, State Farm is now attempting judicial gymnastics to avoid paying the judgment.


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Yesterday, the House Judiciary Subcommittee on the Constitution and Civil Justice held a hearing entitled “Oversight of the False Claims Act,” in which corporate lobbyists organized by the Chamber of Commerce worked to advance their agenda to cripple the False Claims Act.

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Washington Post Reports: Largest DOD contractor in Iraq and Afghanistan gags employees from reporting fraud.

Employees who witness fraud threatened with termination if they told ANYONE outside of KBR of allegations.

A February 20, 2014, report by The Washington Post revealed that Halliburton/KBR, one of the nation’s largest government contractors, requires employees to

Under a new program championed by the National Whistleblowers Center (NWC) to reduce securities fraud, the Securities and Exchange Commission (SEC) today announced its first whistleblower award of nearly $50,000.

The SEC’s announcement is the mark of success for its new Whistleblower Program, which was established one year ago after passage of the Dodd-Frank Act.

On September 22nd, a settlement was reached between Sean Taeschner and the Catholic Archdiocese of Seattle. (See previous blog post on Mr. Taeschner’s case.) The diocese had initiated its own investigation, following the claims made by Mr. Taeschner. The auditor hired by the diocese, however, confirmed the findings from the previous investigation, after which