Tagged Articles

financial fraud 35 articles

Monsanto Whistleblower Could Receive One of SEC’s Largest Payouts Yet

A whistleblower who tipped off the Securities and Exchange Commission (SEC) to accounting violations and other fraud concerning Monsanto’s blockbuster herbicide Roundup could receive up to $24 million of an $80 million penalty the agribusiness titan agreed to pay. If the unidentified tipster receives a higher percentage of the sanctions imposed by the SEC on Monsanto, it could be one of the largest awards the SEC’s Office of the Whistleblower has given since the Dodd-Frank Act instituted the program in 2010. An SEC investigation of the whistleblower’s allegations found that Monsanto had failed to account for millions of dollars in ... Read More

SEC Awards Industry Analyst $700,000 For “Outsider” Whistleblower Tips

The U.S. Securities and Exchange Commission (SEC) will pay a whistleblower award of more than $700,000 to a company outsider who conducted a detailed analysis of misconduct that led the agency to a successful enforcement action. SEC documents indicate this case may be the first time the agency’s whistleblower office has successfully taken action against a company based on tips provided by someone outside of the offending company — in this case, a financial industry analyst. “The voluntary submission of high-quality analysis by industry experts can be every bit as valuable as first-hand knowledge of wrongdoing by company insiders,” said ... Read More

SEC Awards Whistleblower More Than $325,000

A former investment firm employee who tipped the U.S. Securities and Exchange Commission (SEC) with specific information about fraudulent activity within an unidentified firm has received a whistleblower award of more than $325,000. The SEC said that the whistleblower’s tips enabled its enforcement staff to open an investigation and uncover the extent of the fraudulent activity within the company. To protect the identities of whistleblowers who risk their careers to report wrongdoing, the SEC never releases specific information about the companies involved in whistleblower complaints. “The whistleblower provided a detailed description of the misconduct and specifically identified individuals behind the ... 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

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

U.S. Commodity Futures Trading Commission resolves its first whistleblower case

A whistleblower who provided tips that led to the first-ever recovery by the U.S. Commodity Futures Trading Commission (CFTC) since its two-year-old whistleblower program was created will receive $240,000. On Tuesday CFTC Chairman Mark Wetjen said that the whistleblower provided valuable information about violations of the Commodity Exchange Act. The whistleblower’s identity has not been disclosed in compliance with regulations that require confidentiality to protect the whistleblower from retaliation. “I am pleased to announce this first award, which illustrates that the CFTC’s Whistleblower Program is a valuable resource for the American public. Information received under the Whistleblower Program helps the agency ... Read More