Posts belonging to Category SEC Whistleblowers

Top Prosecutor Condemns Wall Street Culture


“[T]he question we face today is not whether insider trading is rampant but whether corrupt corporate culture is.” That is the assessment of the top prosecutor of Wall Street crime, U.S. Attorney Preet Bhara. There is no question that insider trading is rampant; that fact has been amply demonstrated, says Bhara. The larger and “most […]

Recent Case Strengthens Whistleblower Protections


A U.S. federal district court issued a ruling strengthening corporate whistleblower protections. The court held that the Dodd-Frank financial reform act provides protection to employees of subsidiaries as well as those who work directly for the parent companies, and that the protection applies retroactively to cases that predate the enactment of Dodd-Frank.

SEC Expected to Pay Hundreds of Millions of Dollars to Whistleblowers


The Securities and Exchange Commission will soon pay out $452 million to whistleblowers across the country, according to a New York Post article, “SEC set to hand out up to $452M to whistleblowers.” The SEC’s whistleblower program recently marked its first anniversary. Whistleblowers can collect from 10 percent to 30 percent of what the government […]

Layoffs Loom for More Senior Level Securities Professionals


More Wall Street jobs cuts are expected as deal-making, capital-raising and lending have been severely crimped by the global economic downturn. The resulting lower revenues are making a new round of layoffs increasingly likely (“On Wall St., few places to hide as jobs ax hovers,” Reuters). As the article implies, the cuts have reportedly even […]

Corporate Opposition to Securities Whistleblower Program Unfounded


A non-partisan group has determined that corporate objections to the new securities whistleblower program are unfounded. The Dodd-Frank Act instituted a policy that rewards employees for revealing illegal companies practices to regulators. This policy offers the whistleblowers rewards of 10-30 percent of SEC penalties greater than $1 million. Additionally, whistleblowers can remain anonymous if they […]

Whistleblower Tips Indicate that Fraud Runs Rampant on Wall Street


The Securities and Exchange Commission is busy handling a deluge of whistleblower tips. An average of 7 tips per day has forced the SEC to triage the tips. Whistleblowers stand to receive substantial monetary awards for tips that lead to successful SEC action (“SEC Enforcement Division Buried in Whistleblower Tips,” by Ian Thoms, Law360). In […]