December 9, 2015
Strong E&C Programs: New Report Examines Key Characteristics
Labaton Sucharow
Working at the forefront of whistleblower advocacy, we have previously discussed the numerous ways companies hinder or actively retaliate against individuals who choose to bring corporate misconduct to light. In fact, according to the Ethics and Compliance Initiative’s National Business Ethics Survey, more than 1 in 5 respondents said they experienced retaliation after reporting internally. We also continue...
Articles & Perspectives
November 24, 2015
Choosing to Act: Paths for Potential Whistleblowers
Labaton Sucharow
Among the many exciting trends examined in the recent annual report of the SEC Office of the Whistleblower, I was particularly impressed by the substantial growth in the number of tips received by the Commission. The nearly 4,000 tips—a record—not only illustrates growing public awareness of the program, but also demonstrates public action. Simply, a startling and increasing number...
Articles & Perspectives
November 23, 2015
Five Tips for Potential Corporate Whistleblowers
Labaton Sucharow
In a recent piece in The New York Times, I discuss some of the key considerations for SEC whistleblowers including when, how and what to report, and how to navigate the high pressure environment of the whistleblower’s workplace. To read the full article, see here.
Articles & Perspectives
November 20, 2015
5 Tips for Potential Whistleblowers
The New York Times
In an article in The New York Times, Jordan Thomas set out five tips prospective whistleblowers must keep top of mind while weighing the decision to report wrongdoing. Perhaps most important is that individuals must pay close attention to what information they report, to whom and when. Jordan also suggests “you don’t have to be...
Articles & Perspectives
November 17, 2015
SEC Whistleblower Office Annual Report: Two of Eight Awards to [Jordan Thomas][prior firm][‘s] Clients
Labaton Sucharow
Late yesterday, the SEC Office of the Whistleblower issued its annual report to Congress chronicling the program’s activities during the prior fiscal year. We summarized the results in a piece for the FCPA Blog here. Looking at the eight whistleblower awards issued this past year, there are two notable firsts: the first whistleblower award to a...
Articles & Perspectives
November 9, 2015
Recent Whistleblower Award: Timing Matters
Labaton Sucharow
The SEC just announced another whistleblower award, granting more than $325,000 to a former investment firm employee whose tips led to a successful enforcement action. This award, like the $30 million award granted to a whistleblower last year, came with a caveat: the whistleblower could have received a larger award, if not for a delay in reporting. While...
Articles & Perspectives
November 3, 2015
A Bold Step Forward: New UK Rules Empower Whistleblowers
Labaton Sucharow
Just last month, the UK’s Financial Conduct Authority (FCA), together with the Bank of England’s Prudential Regulatory Authority, published strident new rules to encourage and support whistleblowers at financial institutions. By September 2016, banks and credit unions with more than £250 million in assets must standardize internal whistleblowing programs. They must also assign a senior manager to...
Articles & Perspectives
October 23, 2015
SEC Announces Fiscal Year 2015 Enforcement Results: Innovative Actions to Fight Corruption
The SEC just released its fiscal year 2015 results, which highlight the Commission’s stalwart determination to protect investors, hold companies and executives responsible for misconduct, and demand integrity in our financial markets. The SEC’s enforcement approach brought an amazing breadth and depth of cases spanning the entire securities industry. The Commission filed 807 enforcement actions, a...
Articles & Perspectives
October 20, 2015
The Truth About Corporate Whistleblowers
Labaton Sucharow
Disgruntled employees out for revenge. Rats. Opportunists. We’ve all heard the derogatory terms aimed at whistleblowers. And there’s a cruel irony at the core of the name-calling: since whistleblowers often operate quietly or anonymously, they are unable to correct the many common misconceptions about their character and motives. In the aftermath of the financial crisis,...
Articles & Perspectives
September 22, 2015
Whistleblowers Coming Forward in Huge Numbers: Boston SEC Reports Flood of Tips
Labaton Sucharow
In highly encouraging news for investors and market integrity, the SEC’s Boston regional director, Paul Levinson, recently told Law360 that the agency’s Whistleblower Program is yielding a “steady fire hose” of fraud tips and having a remarkable effect on the culture of the financial services industry in New England. The Boston area’s success is just the latest...
Articles & Perspectives
September 21, 2015
New Justice Department Policy Targets Wall Street Fraudsters
Labaton Sucharow
Following criticism and public concern over the lack of prosecutions against individuals involved in the financial crisis, the Department of Justice recently released guidance that underscores a renewed effort to charge individuals in corporate wrongdoing. The memo, which sets forth best practices for federal prosecutors, makes clear that a company should be considered cooperative in an investigation...
Articles & Perspectives
September 11, 2015
Another Victory for Whistleblowers: Federal Appeals Court Rules that Internal Reporting Triggers Protetions
Labaton Sucharow
In another significant victory for the SEC and for whistleblowers, the U.S. Court of Appeals for the Second Circuit reversed a lower court and ruled that whistleblowers who report potential wrongdoing to their company prior to reporting to the SEC are entitled to the robust employment protections established under Dodd-Frank. As we discussed in an earlier post, the...
Articles & Perspectives