Category: Whistleblower Systems

Surprising Survey Covering SEC Whistleblower Program

Accounting and consulting firm BDO USA, LLP conducted an August 2011 annual national telephone survey entitled “The 2011 BDO Board Survey”. Interviewers spoke directly to 101 board members for public companies with revenues ranging from $250 million to $750 million. Although the survey covered other corporate governance matters, this post involves required whistleblower reporting systems. …

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Permanent link to this article: https://betweenthenumbers.net/2011/09/surprising-survey-covering-sec-whistleblower-program/

Sox whistleblower protections again interpreted narrowly

The Ninth Circuit took a narrow reading of the whistleblower protections provided under Sarbanes-Oxley, and thereby eliminated the applicability of any whistleblower protection.  The would-be whistleblowers were two internal auditors at Boeing.  Both employees spoke to a newspaper reporter regarding their concerns.  The reporter included the employees’ information in an article entitled “Computer security faults …

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Permanent link to this article: https://betweenthenumbers.net/2011/05/sox-whistleblower-protections-again-interpreted-narrowly/

Large IRS Whistleblower Payoff Encourages Others

The Internal Revenue Service paid a $1.1 million reward to an anonymous whistleblower for information that exposed a tax fraud by Enron, Bankers Trust and others before the company collapsed.  The whistleblower, a Wall Street banker who has chosen to remain anonymous to protect his job and career, received the maximum reward of 15 percent. …

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Permanent link to this article: https://betweenthenumbers.net/2011/03/large-irs-whistleblower-payoff-encourages-others/

Whistleblower activity will fuel increased litigation in 2011.

Since the advent of the Sarbanes-Oxley Act, public companies have been required to provide a means for employees to communicate inappropriate financial and accounting control activity to the Audit Committee in a confidential manner.  The Dodd-Frank Act expanded the use of whistleblower systems in an effort to avoid the SEC’s own whistleblower setup.  Whistleblower systems …

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Permanent link to this article: https://betweenthenumbers.net/2011/03/whistleblower-activity-will-fuel-increased-litigation-in-2011/

Update on SEC Whistleblower Program under Dodd-Frank

Section 922 of the Dodd-Frank Act contains a whistleblower program sponsored by the Securities and Exchange Commission (SEC). This law (i) makes significant changes in the existing whistleblower provisions of the Sarbanes-Oxley Act of 2002, and (ii) authorizes the SEC to pay between 10 and 30 percent of a recovery over $1 million to anyone …

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Permanent link to this article: https://betweenthenumbers.net/2011/02/update-on-sec-whistleblower-program-under-dodd-frank/