Tagged Articles

financial fraud 35 articles

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

Whistleblowers prompt corporate reform, new study finds

Companies that have engaged in corporate fraud, regulatory violations, and other wrongdoing resulting in financial harm are inclined to clean up their act after a whistleblower exposes internal misconduct, a new University of Iowa study has found. According to the New York Times, new research by Jaron H. Wilde, assistant professor of accounting at the University of Iowa’s Tippie College of Business, shows “a sharp and lasting drop in financial wrongdoing at companies that were subject to whistleblower investigations.” The study, which will be published in The Accounting Review, looked at cases of whistleblower activity in 317 public companies in ... 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

SEC Awards Whistleblower $3.5 Million

The Securities and Exchange Commission (SEC) said Monday that it awarded a whistleblower approximately $3.5 million for providing information that resulted in an investigation and subsequent enforcement action. In order to protect the whistleblowers who provide inside information to the SEC of fraud and securities violations, the agency does not disclose details that could directly or indirectly reveal their identities. Confidentiality is also intended to encourage other potential whistleblowers to step forward. “Whistleblowers do a tremendous service to the investing public and we will continue to reward those who come forward with valuable tips that help us bring successful cases ... Read More

CFO Whistleblower Awarded Nearly $2 Million In Wrongful Termination Case

A federal administrative law judge has awarded the former chief financial officer of a chain of medical clinics in the Northwest nearly $2 million, finding credibility with his claim that he was fired in retribution for refusing to wrongfully alter financial reports. Greg Becker, the former CFO of Rockwood Clinic, which operates a dozen primary care clinics in the Spokane, Wash., and Couer d’Alene, Idaho, areas, sued his employer and its parent company, Tennessee-based Community Health Systems, in 2012. Mr. Becker alleged that the company repeatedly tried to bully him into lowering the company’s projected losses for 2012 from $12.8 ... Read More

SEC Awards Whistleblower $20 Million, Third-Largest Award To Date

The U.S. Securities and Exchange Commission (SEC) said Monday, Nov. 14, that it awarded a whistleblower more than $20 million for providing “valuable information” to the agency in a case of securities fraud. The tipster came forward and submitted tips promptly, the SEC said, which allowed authorities to act quickly and make a “near-total recovery” for investors who likely would have suffered much greater financial harm had the scheme continued. The $2o-million award is the third-largest the SEC has doled out since its Office of the Whistleblower was launched in 2011 after being formed by the Dodd-Frank Act to combat ... Read More

CFTC Announces Fourth Whistleblower Award

The U.S. Commodity Futures Trading Commission (CFTC) on Tuesday announced an award of approximately $50,000 to a whistleblower who provided tips that led to a successful enforcement action. The award is the fourth time the CFTC’s Whistleblower Program has awarded a whistleblower who provided valuable information about violations of the Commodity Exchange Act (CEA). It is also the third whistleblower award the agency has made in the last 10 months. The CFTC awards whistleblowers whose tips result in successful enforcement actions between 10-20 percent of the monetary sanctions collected. The whistleblower will also be entitled to the same percentage of ... Read More

SEC Whistleblower Chief To Leave Office In July

The first head of the Securities and Exchange Commission’s (SEC) whistleblower program will leave the agency at the end of July. Sean McKessy became head of the SEC’s Office of the Whistleblower when it was launched in February 2011 after the Dodd-Frank Wall Street Reform and Consumer Protection Act created rules for whistleblower protections and incentives. According to the SEC, Mr. McKessy was instrumental in helping the agency build its first whistleblower program, which helped regulators to assess and review whistleblower tips received by the agency, evaluate whistleblower award claims, and make recommendations to the Commission on whether potential award ... Read More

SEC Awards Whistleblower $17 Million; Fourth Award in One Month

The U.S. Securities and Exchange Commission (SEC) said on Thursday it awarded a whistleblower more than $17 million for providing detailed tips that “substantially advanced the agency’s investigation and ultimate enforcement action.” The whistleblower was a company insider, the agency said. The award is the second-largest issued by the SEC since its whistleblower program began nearly five years ago. The SEC issued its highest-ever award of more $30 million to a single whistleblower in September 2014. An award of $14 million – the agency’s third highest – was paid to a whistleblower in October 2013. “Company insiders are uniquely positioned to protect ... Read More

Two Whistleblowers Share $450,000 Award For Aiding SEC Investigation

Two whistleblowers who provided the Securities and Exchange Commission (SEC) with tips that prompted the agency to open a corporate accounting investigation will share an award of more than $450,000. The whistleblowers also assisted the SEC once the investigation was underway. The SEC announced the whistleblower award on Friday, May 20. It was third such award the agency has given to tipsters in recent days, bringing total whistleblower payouts in May to $10 million. The recent uptick in whistleblower awards could be attributed to an increasing number of people aware of the SEC’s whistleblower program and the incentives and protections ... Read More