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complaints 57 articles

Whistleblower gets $300,000 award for providing tips to SEC

The Securities and Exchange Commission (SEC) has awarded a whistleblower $300,000 for exposing wrongdoing within a securities company. According to the SEC’s Office of the Whistleblower, the employee had audit and compliance functions within the company. The employee reported the misconduct to company supervisors repeatedly, but they failed to take appropriate action to correct the situation. The award is the first the SEC has given to a whistleblower with an audit and compliance role within a company. It comes amid a national debate on whether employees whose jobs involve monitoring company activity for regulatory and legal compliance should be permitted ... Read More

SEC announces record $30 million whistleblower reward

The U.S. Securities and Exchange Commission (SEC) said Monday that it will pay a whistleblower more than $30 million for providing the agency with original information that was key in helping secure a successful enforcement action and recovery. The award is the largest ever the SEC has paid to a foreign whistleblower and is the fourth award the regulator has paid to a whistleblower in a foreign country, demonstrating the international reach of the SEC’s Office of the Whistleblower since it opened in July 2010. “This whistleblower came to us with information about an ongoing fraud that would have been ... Read More

U.S. Attorney General Holder calls for better whistleblower rewards in financial industry

Whistleblowers who help expose fraud and other misconduct in the financial world could earn bigger rewards in the future in exchange for the efforts, if U.S, Attorney General Eric Holder has his way. Threats brewing in the financial industry today have come to resemble some of the dubious greed-driven behaviors that devastated the U.S. economy in 2008 despite the government’s efforts to prevent a similar catastrophe from recurring in the coming years. “We are already witnessing a troubling return to some of the very same profit-driven risk-taking that contributed to the 2008 collapse,” Mr. Holder said in a speech Wednesday ... Read More

Dodd-Frank whistleblower provisions don’t protect overseas whistleblowers, appeals court says

The anti-retaliation provisions of the Dodd-Frank Act do not protect whistleblowers outside the United States, a federal appeals court ruled last week, upholding the decision of a lower court that struck down a lawsuit filed by a Taiwanese national against Siemens AG. Liu Meng-Lin, a former compliance officer at Siemens China, sought the whistleblower protections afforded by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibit companies from retaliating against employees who call out fraud and other wrongdoing to federal regulators. Mr. Liu alleged that he was fired after he took his concerns over an alleged kickback ... Read More

SEC awards whistleblower $400K after internal complaints of fraud fail

A whistleblower who turned to the Securities and Exchange Commission (SEC) after his concerns of fraud fell on deaf ears within his company has received a $400,000 reward, the agency announced. The SEC said in an announcement that the whistleblower provided credible tips and other information that helped the agency to complete an investigation faster than it would have been able to do without the help. Another government agency had already initiated an investigation of fraud and misconduct within the company when the whistleblower approached the SEC, a circumstance that would normally preclude a whistleblower case from being accepted by ... Read More

President’s order binds prospective government contractors to stronger labor laws

Companies seeking lucrative federal government contracts will have a hard time getting them if they have a history of labor violations or require workers to give up their right to sue as a condition of employment, thanks to an executive order President Obama signed Thursday. “Some companies that earn billions of dollars as government contractors are among the worst violators of U.S. labor laws, yet year after year they keep winning new contracts,” the Associated Press reported. “So President Barack Obama is aiming to end impunity for labor violators by pushing companies to clean up their act if they want ... Read More

SEC settles first-ever whistleblower retaliation case for $2.2 million

The Securities and Exchange Commission (SEC) has settled its first whistleblower retaliation case since financial reforms introduced under the 2010 Dodd-Frank Act strengthened whistleblower protections. According to the SEC’s Office of the Whistleblower, Paradigm Capital Management, an Albany, N.Y.-based hedge fund advisory firm, and its owner Candace King Weir “engaged in prohibited principal transactions and then retaliated against the employee who reported the trading activity to the SEC.” Ms. Weir and her firm agreed to pay $2.2 million to resolve the charges. The whistleblower alleged that Ms. Weir conducted transactions between Paradigm and a broker-dealer that she also owns while ... Read More

FDA warns manufacturer, advises public not to use GenStrip diabetes test strips

The Food and Drug Administration (FDA) warned a manufacturer of diabetes test strips about manufacturing violations and issued a safety communication urging consumers and health care professionals not to use the company’s products. GenStrip Blood Glucose Test Strips, sold by Shasta Technologies LLC, are used with the LifeScan OneTouch family of glucose meters, such as the Ultra, Ultra 2, and Ultra Mini. During a recent inspection of Shasta Technologies LLC, the FDA found extensive violations of federal regulations that put into question the quality of the products in the manufacturing of GenStrip Test Strips. These regulations, called quality system regulations, require ... Read More

At least 7 confirmed dead in wake of Harlem explosion

At least seven people have been confirmed dead in the aftermath of a gas explosion that demolished two five-story apartment buildings in East Harlem, N.Y., Wednesday morning. Several others are injured and missing. In a press conference near the scene of the blast, Mayor Bill de Blasio called the incident “a tragedy of the worst kind” and said that rescue operations would continue indefinitely with the hope of finding those missing still alive. Strong winds and temperatures in the 20s impeded rescue efforts overnight as firefighters continued to extinguish flames that lingered after the initial explosion set fire to the ... Read More

Johnson and Johnson wants to conceal failure to preserve evidence in transvaginal mesh lawsuit

Johnson & Johnson is asking a West Virginia federal judge not to allow the plaintiff in an upcoming bellwether trial in multidistrict litigation over injuries caused by its transvaginal mesh to tell jurors that the company failed to preserve evidence. Johnson & Johnson claims the issue is no longer relevant to the case. U.S. Magistrate Judge Cheryl Eifert found the consumer health care giant had lost potential evidence in the case and suggested that jurors may need to hear about circumstances such as when a plaintiff’s physician relied on evidence provided by a sales representative whose records were destroyed. The ... Read More