Tagged Articles

Dodd-Frank 18 articles

U.S. Appeals Court Says Vanguard Whistleblower Lawsuit Should Be Heard

A former in-house tax lawyer for investment giant Vanguard Group should have his whistleblower retaliation complaint heard, the U.S. Third Circuit Court of Appeals has ruled. The appeals court ruled last week that the U.S. District Court in Philadelphia should reconsider David Danon’s lawsuit against his former employer alleging the mutual-fund behemoth fired him for voicing his objections over federal and state income tax underpayments. Mr. Danon says Vanguard’s alleged underpayments amounted to billions of dollars. Mr. Danon claims Vanguard violated the whistleblower protections under the Dodd-Frank Act of 2010 when it wrongfully terminated him. Writing for the three-judge panel, ... Read More

Court’s Ruling in Digital Realty Retaliation Complaint Allows Broader Whistleblower Protections  

A former sales representative for a San Francisco datacenter acquisition company who claims to have been fired for reporting financial wrongdoing internally may still sue the company as a whistleblower even though he did not contact the federal government, the Ninth U.S. Circuit Court of Appeals ruled February 9. The ruling provides further clarity on what whistleblower activity is protected by the Securities and Exchange Commission (SEC) under the Dodd-Frank law. The question of whether a whistleblower who is fired for reporting financial improprieties to his employer but not federal regulators is one that has divided federal courts in the ... Read More

SEC Whistleblower Gets $5.5 Million Award For Providing ‘Critical’ Tips

The U.S. Securities and Exchange Commission (SEC) has awarded a whistleblower more than $5.5 million for providing “critical information that helped (regulators) uncover an ongoing scheme” to defraud investors, the agency said in a Jan. 6 announcement. According to the SEC, the whistleblower in this case was employed at the company involved in the wrongdoing and reported information directly to the SEC. These tips enabled SEC authorities to make a successful enforcement action and end the scheme. “Whistleblowers play a key role in bringing wrongdoing to the SEC’s attention, and this whistleblower helped prevent further harm to a vulnerable investor ... Read More

SEC Attempts To Fend Off Award Applications From Zombie Whistleblowers

The Securities and Exchange Commission (SEC) has been fending off complaints filed by “zombie whistleblowers” – tipsters who provided the regulatory agency with information about securities violations or fraud before its whistleblower program was established under 2010’s Wall Street reform laws. According to The National Law Journal, the SEC considers award applications filed by whistleblowers before the Dodd-Frank Act was enacted as “dead on arrival.” But that hasn’t stopped some past tipsters from pressing their claims in court. One such zombie whistleblower took his dispute for an award to the U.S. Court of Appeals for the D.C. Circuit earlier this ... Read More

Proposed Bill Seeks To Strengthen Protections, Awards For Financial Whistleblowers

A pair of Democrat legislators has introduced a bill that aims to close loopholes in the Dodd-Frank Act, reinforce whistleblower protections, and boost awards for those who risk their careers to call out fraud and other misconduct in the financial industry. Senator Tammy Baldwin (D-Wis.) and Rep. Elijah Cummings (D-Md.) say the Whistleblower Augmented Reward and Non-Retaliation Act of 2016 is needed to shore up and expand vital whistleblower protections in a time when the current rules, introduced by the Dodd-Frank Act of 2010 to combat rampant financial fraud, are being declawed by Wall Street, banks, and other financial firms. ... Read More

Whistleblower’s Retaliation Complaint May Go To U.S. Supreme Court

Whistleblowers who report violations of securities laws internally but not to federal authorities are protected from retaliation, the U.S. Court of Appeals for the Second Circuit ruled Sept. 10, a decision that likely puts the case on a track to the U.S. Supreme Court. The appellate court’s 2-1 decision potentially opens the door for more corporate whistleblowers who have been harassed, demoted, passed up for promotion, terminated, or in other ways punished for calling out wrongdoing to sue their employers over alleged retaliation. The ruling revives a lawsuit filed by Daniel Berman, a former finance director at Neo@Ogilvy, the digital ... Read More

Citizens Bank To Pay $18.5 Million For Pocketing Deposit Discrepancies

Citizens Bank will pay $18.5 million in refunds and penalties for its failure to credit consumers with the full amount of their deposits, the Consumer Financial Protection Bureau (CFPB) announced Aug. 12. CFPB Director Richard Cordray said that the Cleveland, Ohio-based bank pocketed the extra money when the amount customers wrote on their deposit slips was less than the amount they actually deposited. “Citizens Bank regularly denied customers the full credits of their deposits when there were discrepancies between deposit slips and the actual money transferred into the bank,” Mr. Cordray said in a statement. “The bank chose to ignore ... Read More

Critical Wall Street reforms gutted in Republican-approved spending bill

The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010 as a safeguard to help the U.S. economy avert another financial catastrophe like the Great Recession of 2007-2008. The Act’s provisions have since become one of the federal government’s most effective weapons in the fight against the type of high-level financial fraud that drove the economy to the brink of a depression and ruined the quality of life for millions of Americans. Despite all the progress it has made in restoring a level of integrity and trust in the U.S. banking and investment industry, the very same ... Read More

SEC probing financial firms for anti-whistleblower activity

The U.S. Securities and Exchange Commission (SEC) has opened an investigation into whether banks and other financial corporations are silencing whistleblowers, according to the Wall Street Journal. WSJ reports that the SEC has sent letters to numerous companies in recent weeks asking them to turn over years of nondisclosure agreements, employment contracts, and other documents that could indicate whether they require employees stay silent as a condition of employment. The documents sought by the SEC “sometimes include clauses that impede employees from telling the government about wrongdoing in the company or other potential securities-law violations,” WSJ reported. “In some cases, ... 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