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The Dodd-Frank Whistleblower Provisions: Some Other Things to Worry About

Among the many innovations introduced in the massive Dodd-Frank Wall Street Reform and Consumer Protection Act enacted this past July are the new whistleblower provisions, designed to encourage employees and others to report securities law violations to the SEC. The bounty award provided for in the...

Proposed Rules for Implementing the Whistleblower Provisions From Dodd-Frank

The SEC has released the text of its proposed new rules for implementing the whistleblower provisions of Section 21F of the Securities Exchange Act of 1934: Release No. 34-63237 . In fashioning these proposed rules, the Commission has considered and weighed a number of potentially competing interests...

Could SEC Whistleblower Bounty Program Harm Internal Compliance?

Although nearly everyone - including the five SEC commissioners - agrees that corporate whistleblowers are the best source for detecting corporate fraud, there is trepidation about the proposed whistleblower bounty program under the Dodd-Frank Act. Many are concerned that the SEC program could undermine...

Dodd-Frank Act Prohibits Public Companies’ Subsidiaries and Affiliates From Retaliating Against Employees Who Report Fraud

On July 21, 2010, President Obama signed into law, effective July 22, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act," "Dodd-Frank," or the "Act"), H.R. 4173. Sections 922 and 929A of the Dodd-Frank strengthen and expand the...

Will Cash Incentives for Whistleblowing Undermine Compliance Programs?

Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides an expanded whistleblower program that allows the whistleblower to get part of the money paid to the SEC for the violation. After several years of encouraging the development of internal complaint hotlines and compliance...

WikiLeaks Versus the SEC

No, (to my knowledge) Wikileaks hasn't released detailing corruption in the SEC. Instead, Sherron Watkins, the primary whistleblower in the Enron fraud, weighed in on the SEC's new incentives for whistleblowers . In a panel discussion about whistleblowers held by the New York State Society...

The Word is "Whistleblower"

A number of different organizations generate annual publicity for themselves by designating a word (or words) of the year . We are not yet half way through 2011 but I am already prepared to propose my own candidate for this year's word of the year - the word is "whistleblower." From the...

SEC Adopts Final Dodd-Frank Whistleblower Implementation Rules

On May 25, 2011, the SEC adopted the final rules implementing the whistleblower provisions of the Dodd-Frank Act . The SEC declined to propose a rule that would have required whistleblowers to report first through internal corporate compliance programs. However, the SEC adopted changes that are intended...

SEC Adopts Rules Establishing Whistle-Blower Program under Dodd-Frank Act

WASHINGTON, D.C. - (Mealey's) The Securities and Exchange Commission on May 25 adopted 17 new rules providing for whistle-blower incentives and protection under the Securities Exchange Act of 1934, bringing it in compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act. ...

The New SEC Whistleblower Rule

In a blow to the efforts of internal compliance, the SEC will let corporate whistle-blowers collect a percentage of penalties when they report financial wrongdoing, even when they bypass companies' internal complaint systems. "For an agency with limited resources like the SEC, it is critical...

Worth Reading … Final SEC Whistleblower Rules

by Gary Larkin As you all may well know by now, the SEC has adopted its final rules to create a whistleblower bounty program as part of the Dodd-Frank Act by a familiar 3-2 split vote. The rules, which go into effect 60 days after they are submitted to Congress or published in the Federal Register...

Cadwalader Client & Friends Memo: The Dodd-Frank Whistleblower Provisions-- Considerations for Effectively Preparing for and Responding to Whistleblowers

As part of the Dodd-Frank Act ("Dodd-Frank" or the "Act"), Congress created powerful incentives to encourage persons to report (i) potential violations of the federal securities laws to the Securities and Exchange Commission ("SEC")1 and (ii) potential violations of the...

Duane Morris Alert: SEC Adopts Final Rules on Dodd-Frank Whistleblower Program

SEC's Dodd-Frank whistleblower rules may incentivize employee bounty-hunting at public companies. Companies need to improve their compliance programs to limit the potential hazards. On May 25, 2011, the U.S. Securities and Exchange Commission (SEC) adopted final rules (the "Rules") for...

SEC's New Dodd-Frank Whistleblower Rules Redefine Reporting Landscape

Perkins Coie Experts Examine the SEC's Final Rules Implementing the Hotly Anticipated New Dodd-Frank Whistleblower Bounty Program and Provide Practical Guidance for Post-Act Compliance By Patrick Collins Esq., T. Markus Funk Esq., Gina LaMonica Esq. and Caryn Trombino Esq. Excerpt: Introduction...

SEC Commissioner Paredes Speaks at Stanford Directors' College

I am on the ground in Palo Alto this week at the annual Stanford Law School Directors' College , where the opening speaker on Sunday night was SEC Commissioner Troy Paredes , whose presentation was in the form of a dialog with Stanford Law Professor and former SEC Commissioner Joseph Grundfest...

CFTC Whistleblower Rules Finalized

The CFTC was given expanded powers to financially reward whistleblowers through the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Pursuant to new Section 23 of the Commodity Exchange Act (CEA) entitled, "Commodity Whistleblower Incentives and Protection," the CFTC...

SEC Releases Initial Report on the Dodd-Frank Whistleblower Program

Even thought the SEC's final regulations for the Dodd-Frank whistleblower program just became effective on August 12, 2011, the agency has already filed its first report on the whistleblower program. Under Section 924(d) of the Dodd Frank Act, the SEC must report annually to Congress on its activities...

SEC’s Whistleblower Annual Report

Dodd-Frank added Exchange Act Section 21F(g)(5) and requires that SEC's Office of the Whistleblower to report to Congress annually on the whistleblower program. It's due each October 30. I'm sure the SEC wanted to be in compliance, so they released the first annual report on the Dodd...

Will Obstacles Deter the SEC's Dodd-Frank Whistleblower Program?

Whistleblower information may be one of the SEC's "most effective weapons in its new enforcement arsenal," but the agency's whistleblower program "faces challenges on many fronts," according to an April 23, 2013 New York Times Dealbook article entitled "Hazy Future...

Whistleblower Report Follow-On Securities Suit: We'll Be Seeing More of These

On October 30, 2013, the SEC announced another whistleblower bounty award under the Dodd-Frank whistleblower program. Although the size of this latest award ($150,000) is relatively modest compared to the recent $14 million award (about which refer here ), the most recent award does suggest that awards...

SEC Releases Fiscal 2013 Whistleblower Report

Whistleblower reports to the SEC continued to rise during the latest fiscal year, according to the agency’s annual Dodd-Frank Whistleblower Program report to Congress. According to the November 15, 2013 report, a copy of which can be found here , there were 3,238 whistleblower reports to the SEC...