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Dodd-Frank 18 articles

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

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

SEC Whistleblower report shows substantial climb in number of tips, complaints received

The number of complaints, tips, and reports of fraud and other wrongdoing received by the U.S. Securities and Exchange Commission’s (SEC) Office of the Whistleblower climbed eight percent in the past year, according to the 2013 Annual Report on the Dodd-Frank Whistleblower Program. According to the SEC report, the agency received 3,238 complaints in fiscal year 2013, up from 3,001 in 2012. The SEC program, designed to combat financial fraud like that which fueled the financial meltdown of the late 2000s, encourages private individuals to alert federal regulators to securities law violations and financial crimes. By empowering private-sector employees to ... Read More

Dodd-Frank anti-retaliation provisions don’t apply to overseas whistleblowers, U.S. judge rules

Whistleblower provisions written into the 2010 Dodd-Frank Act do not protect overseas workers from retaliation, a New York federal judge has ruled in a case that has been closely monitored by the financial industry and legal experts in the U.S. The case involved a China-based employee Meng-Lin Liu, who filed a whistleblower complaint against his employer Siemens AG in 2011, claiming the company fired him in retaliation for raising concerns internally about fraud and other wrongdoing. Mr. Meng-Lin, a former regional compliance officer for a Chinese subsidiary of Siemens, raised concerns that employees were violating the company’s anti-graft controls as ... Read More

Internal whistleblowers protected by Dodd-Frank, Massachusetts federal court rules

A federal judge in Massachusetts has ruled that whistleblowers who report fraud and other wrongdoing within their company are protected under the 2010 Dodd-Frank Act, adding to a growing list of U.S. District Court judges who have made similar rulings. The pro-whistleblower rulings contradict the interpretation of a circuit court ruling earlier this year. According to the Wall Street Journal, the Massachusetts District Court judge issued an opinion Wednesday that “rejected the argument that Richard Ellington, a former employee of New England Investment and Retirement Group Inc., was ineligible for protection from retaliation under Dodd-Frank because he did not report ... Read More