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compliance 8 articles

SEC awards compliance officer about $1.5 million in whistleblower case

A compliance officer at an unnamed firm received an award of more than $1 million for providing the U.S. Securities and Exchange Commission (SEC) insider tips about fraudulent practices and other misconduct that led to a successful enforcement action, the agency said. According to the SEC’s Office of the Whistleblower, the compliance officer stepped forward with tips in an effort to prevent “imminent misconduct” from causing substantial financial harm to the company and its investors. Protecting whistleblowers can be tricky when the tips come from professionals whose job it is to monitor corporate activity for compliance with federal rules and ... Read More

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

CSPC outlines new guidelines for crib manufacturers, consumers

Bombarded with questions about new safety standards for cribs, the Consumer Product Safety Commission (CPSC) has issued a flyer outlining the new, more stringent requirements for crib manufacturers and answering some of the most frequently asked questions from consumers. Most of the questions have been about the drop-sides of cribs, but CSPC says the new rule also encompasses a crib’s mattress support, slats, and hardware, all of which are required to be more durable. Crib manufacturers will also have to test to these new, tougher guidelines in order to prove compliance. The guidelines were established by CSPC following numerous crib ... Read More

FMCSA closes busing company over serious safety violations

The Federal Motor Carrier Safety Administration (FMCSA) has ordered a Pennsylvania-based commercial busing company to cease its operations entirely over serious violations uncovered by a comprehensive safety compliance review. Authorities found RLT Tours of Lake Pond, Pennsylvania, in violation of multiple safety regulations, including hours-of-service requirements, mandatory insurance requirements, vehicle maintenance standards, and compliance with drug and alcohol testing. While the vast majority of bus charter companies takes safety seriously, every now and then inspections turn up a company that operates with little regard for the law and the safety of its passengers, its drivers, and other motorists. Too often, ... Read More

New Compliance Safety Accountability model goes nationwide

The Federal Motor Carrier Safety Administration (FMCSA) this week announced it had taken a major step toward improving commercial truck and bus safety with the launch of its Compliance Safety Accountability (CSA) program nationwide. FMCSA first launched a field test of CSA in Colorado, Georgia, Missouri, and New Jersey in February 2008. Last year, the agency added Delaware, Kansas, Maryland, Minnesota, and Montana to the test group. The program was then modified according to testing results and feedback provided by industry partners. The goal of the CSA (or CSA 2010 as it is commonly called) operational model is to reduce commercial ... Read More

Airline faces nearly $5 million in FAA fines for improperly trained pilots

The Federal Aviation Administration (FAA) has proposed a $4,855,000 civil penalty against Evergreen International Airlines of McMinnville, Ore., a global cargo airline company, for allegedly using pilots on 232 flights who had not been trained in accordance with an FAA-approved training program. The questionable flights were made between Feb. 19 and July 9, 2009, on aircraft equipped with a new flight management system (FMS). The differences between the new FMS and the old system were significant enough to require specific training for pilots who were flying the aircraft. The FAA alleges Evergreen did not complete its FAA-approved training for pilots ... Read More

FAA let Northwest Airlines ignore safety rules, government report finds

Federal regulatory agencies have come under fire recently for their “cozy relationships” with large corporations; the Food and Drug Administration, the National Highway Traffic Safety Administration, and the now-defunct Minerals Management Service have all been targeted for reform by the Obama Administration for their failure to enforce safety rules and regulations. Now the Federal Aviation Administration is being investigated for turning a blind eye on Northwest Airlines while it ignored federal safety regulations for more than a decade. According to a new report by the Transportation Department’s inspector general’s office, the allegations were first made by Mark Lund, an FAA ... Read More

Roadcheck 2010 results show record levels of compliance

Early results from the Commercial Vehicle Safety Alliance’s (CVSA) Roadcheck 2010 found that the commercial motor vehicle industry is close to the record low out-of-service rates set during 2009. Trucks are placed out of service when inspectors deem them to be in serious or repeat violation of federal safety standards. Low out-of-service rates mean that more trucks are complying with rules and regulations. Roadcheck 2010 found that the overall vehicle compliance rate at 80 percent, down slightly down from 80.4 percent last year. Last year’s rate was the highest overall compliance rate since 1996. The overall driver compliance rate stood at ... Read More