Washington, D.C. – September 21, 2018. The public comment period for the U.S. Securities and Exchange Commission (“SEC”) proposed amendments to the rules governing its successful whistleblower program closed on Tuesday, September 18. More than 99% of the comments posted on the SEC’s public comment page oppose the proposed rules. Continue Reading SEC Receives Extensive Criticism in Comments on Proposed Changes to Whistleblower Program
Full transparency needed evaluate the Commission’s proposed rules.
Washington, D.C. September 17, 2018. Today the National Whistleblower Center (NWC), the nation’s leading whistleblower advocacy group, formally requested the U.S. Securities Exchange Commission (SEC) to extend the public comment period for proposed changes to the SEC Whistleblower Program. Continue Reading Whistleblower Advocacy Group Requests SEC Extend Public Comment Period on Controversial Changes to Whistleblower Program
On June 29, 2018 the U.S. Securities and Exchange Commission (SEC) announced proposed amendments that undermine the rules governing its successful whistleblower program.
National Whistleblower Center (NWC) has issued an action alert urging commentary on these proposed amendments. The SEC proposal puts caps on rewards related to cases resulting in $100 million or more in fines. This removes the incentive to blow the whistle on large corporations committing fraud, and consequently will allow large corporate fraud to go unreported and unpunished.
The rewards for SEC whistleblower can be potentially limited for a successful qui tam lawsuit. The SEC is proposing controversial amendments to its whistleblower program. Under current directives, a whistleblower who provides information that leads to an SEC enforcement action receives 10%-30% of the recovery by the agency. This monetary provision incentivizes potential whistleblowers to disclose rather than remain silent.
In Digital Realty Trust v. Somers the Supreme Court issued a destructive decision that will have far-reaching consequences for whistleblowers. Seemingly unaware of the practical consequences of its decision, the Supreme Court unanimously ruled to leave whistleblowers who report internally without critical protections under the Dodd-Frank Act.
Writing for Law 360, NWC Executive Director Stephen M. Kohn explains that employees now take grave risks in using internal compliance programs. In light of the Supreme Court’s decision, whistleblowers should hire an attorney and take their complaints directly to the Securities and Exchange Commission (SEC).
Washington, D.C. November 28, 2017. Rejecting arguments by Senator Charles Grassley, the Securities and Exchange Commission (“SEC”) and numerous representatives from the whistleblower community, during today’s oral argument in Digital Realty Trust v. Somers (No. 16-1276), the U.S. Supreme Court Justices expressed support for stripping internal whistleblowers of protection under the Dodd-Frank Act (“DFA”).
Washington, D.C., November 27, 2017. On Tuesday, Nov. 28th the United States Supreme Court will hear oral argument in Digital Realty Trust v. Somers, the first whistleblower case under the Dodd-Frank Act (DFA) to reach the Supreme Court. Continue Reading Thousands of Whistleblowers at Risk
SEC anticipates paying an additional $221 million to whistleblowers in FY2018.
Washington, DC, November 16, 2017. The Securities and Exchange Commission’s Office of the Whistleblower issued its annual report today. The Commission confirmed that “whistleblowers have provided tremendous value to its enforcement efforts and significantly helped investors.” It also confirmed that whistleblower disclosures have “directly” contributed to “hundreds of millions of dollars returned to investors.” Continue Reading SEC’s Annual Report Confirms $50 Million Paid to Whistleblowers
Corporate whistleblower protection “undermined” if internal complaints not protected.
Washington, D.C. June 26, 2017. The U.S. Supreme Court granted certiorari today in the case of Digital Realty Trust, Inc. v. Somers, Paul. The Court will decide the issue of whether internal reports to managers are covered under the Dodd-Frank Act’s anti-retaliation law. Continue Reading U.S. Supreme Court to Review Dodd-Frank Anti-Retaliation Provisions
Later this week, the House of Representatives is set to vote on the Financial CHOICE Act. Congressman Jeb Hensarling (R – TX), Chair of the House Financial Services Committee, designed and championed this bill. The CHOICE Act will repeal major parts of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act, and deregulate U.S. financial markets. The bill also advances a toxic anti-whistleblower policy (Section 828), which would undermine the U.S. Securities and Exchange Commission’s (SEC) highly successful whistleblower program—incapacitating the most effective tool to rein in misconduct and criminal activity on Wall Street.