Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘investigation’

The SEC Whistleblower Program

Monday, July 10th, 2017

In 2011, a former executive at Monsanto, a large publicly traded company, raised concerns that the company was violating accounting rules and misstating its earnings. Despite being aware of these issues, Monsanto failed to remedy the accounting violations and continued to misstate earnings. Undeterred, the former executive reported his concerns to the U.S. Securities and Exchange Commission (SEC) through its new whistleblower program. Armed with this information, the SEC opened an investigation into Monsanto’s accounting practices and discovered that the company had indeed violated accounting rules and misstated company earnings for three years. Monsanto agreed to pay an $80 million penalty to settle the charges and the former executive received a $22 million award from the SEC.

Overview of the SEC Whistleblower Program  

The SEC Whistleblower Program was established to incentive whistleblowers, like the former Monsanto executive, to report violations of the federal securities laws to the SEC. Under the program, whistleblowers may be eligible for an award when they provide the SEC with original information that leads to successful enforcement actions with monetary sanctions totaling more than $1 million. A whistleblower may receive an award of between 10-30 percent of the monetary sanctions collected.

The SEC requests specific, timely, and credible information about any violation of the federal securities laws. The most common whistleblower tips relate to corporate disclosures and financials, offering fraud and market manipulation. Other notable areas of whistleblower tips relate to insider trading, trading and pricing schemes, foreign bribery, unregistered offerings, and EB-5 investment fraud.

Under the program, whistleblowers may submit tips anonymously to the SEC if represented by an attorney. Moreover, most whistleblowers, regardless of citizenship or position within a company, are eligible (or can become eligible) for an award under the program. This includes internal auditors, external auditors, officers, directors, and even individuals involved in the wrongdoing.

Since 2011, the SEC Whistleblower Program has received over 18,000 tips and has awarded more than $150 million to whistleblowers. Enforcement actions resulting from whistleblower tips have enabled the SEC to recover nearly $1 billion in financial remedies from wrongdoers, much of which has been returned to investors.

Free eBook on the SEC Whistleblower Program

The rules implementing the SEC Whistleblower Program are complex and there are many potential pitfalls for whistleblowers. Zuckerman Law has recently released a free eBook about the program that highlights important steps that whistleblowers should take to increase the likelihood of recovering and maximizing an SEC whistleblower award. The eBook covers the following topics:

Overview of the SEC Whistleblower Program

  • What is the SEC Whistleblower Program?
  • Can I submit an anonymous tip to the SEC Whistleblower Office?
  • What employment protections are available for SEC whistleblowers?
  • What violations qualify for an SEC whistleblower award?
  • What are the largest SEC whistleblower awards?

Whistleblowers Eligible for an Award

  • Who is an eligible SEC whistleblower?
  • Can I submit a claim if I had involvement in the fraud or misconduct?
  • Can I submit a tip if I agreed to a confidentiality provision in an employment/severance agreement?
  • Can compliance personnel, auditors, officers or directors qualify for an SEC whistleblower award?

Reporting to the SEC and Maximizing Award Percentage

  • When is the best time to report the fraud or misconduct to the SEC?
  • Do I have to report the violation to my company before reporting the violation to the SEC?
  • Can I submit an SEC Whistleblower claim if the SEC already has an open investigation into the matter?
  • How do I submit a tip to the SEC?
  • What type of evidence should I provide to the SEC?
  • What factors does the SEC consider when determining the amount of the award?

After Reporting to the SEC

  • What happens after I submit a tip to the SEC?
  • How long does it take to receive an SEC whistleblower award?

Click here to download your free copy of the eBook SEC Whistleblower Program: Tips from SEC Whistleblower Attorneys to Maximize an SEC Whistleblower Award.

About the Author: Jason Zuckerman represents whistleblowers nationwide in whistleblower rewards and whistleblower retaliation claims.  Recently Matt Stock and Zuckerman issued an ebook titled SEC Whistleblower Program: Tips from SEC Whistleblower Attorneys to Maximize an SEC Whistleblower Award.

Fox News faces new legal trouble for sexual harassment

Tuesday, June 20th, 2017

The New York State Division of Human Rights (SDHR) is investigating Fox News for claims of sexual harassment and retaliation, according to attorney Lisa Bloom.

Bloom told ThinkProgress over the phone that a human rights specialist at the agency confirmed the investigation to her on Friday.

According to Bloom, the agency has spoken to one of her clients, Dr. Wendy Walsh, twice, and another of her clients, Caroline Heldman, once in the course of the investigation. The agency also wants to interview a third woman.

Bloom’s law firm filed a request for investigation with the SDHR on April 11th. Bloom told ThinkProgress she asked for the investigation because Fox has “the worst corporate culture I’ve heard of in 30 years as a civil rights attorney.”

“Over the past thirteen years, dozens of women have reported egregious sexual harassment and retaliation at Fox News, with new claims constantly coming to light,” the complaint says. “The company frequently pays women to remain silent and leave the company while the perpetrators and enablers keep their jobs. Others are scared into silence by the company’s well-documented intimidation tactics, including using its giant media platform to smear their reputations. Nearly all of the victims were not only driven out of Fox News, but the television industry entirely.”

The complaint says that since many of the victims signed confidentiality agreements or are barred by time-limits from bringing their complaints to the legal system, they cannot raise the issue with the SDHR themselves.

The SDHR did not immediately respond to ThinkProgress’ request for confirmation.

Bloom told ThinkProgress that a typical remedy for this sort of case would see the state entering into a consent decree with the employer. The employer would likely have to improve their grievance procedures and demonstrate compliance on a regular basis, anywhere from monthly to yearly.

According to Bloom, the process is “pretty intrusive” for the employer, and typically unwelcome.

This report signals a new wave in the network’s ongoing legal troubles, linked to what reports and allegations indicate is a pervasive culture of sexual discrimination.

Last year, former Fox News anchor Gretchen Carlson filed suit against the network’s then-CEO Roger Ailes, alleging sexual harassment and gender discrimination. The network eventually settled with Carlson for $20 million, but her suit opened the floodgates of women coming forward with their own allegations. The scandal led to Ailes’ resignation.

Then this year, the New York Times reported that the network had paid over $13 million over the years to quiet allegations of harassment by Fox News Host Bill O’Reilly. The report led to a spate of women going public with their stories, and ultimately to O’Reilly’s ousting from the network after advertisers abandoned his nightly talk show.

Taken in sum, however, the women’s stories indicate that the problem went beyond the alleged predilections of two of the network’s most powerful men. The allegations and reports paint a picture of systemic sexual harassment and a culture of gender discrimination within the network.

“It’s not about Roger Ailes. It’s about a culture,” Gabriel Sherman, who wrote the book on Roger Ailes and his role in the network, told NPR in July 2016. “And it was a culture where this type of behavior was encouraged and protected. The allegations are that women routinely had to sleep with or be propositioned by their manager in many cases, Roger Ailes, but I’ve reported on another manager who did this in exchange for promotions.”

Fox News has also retained the law firm Paul Weiss to conduct internal investigations of the harassment claims against Roger Ailes and Bill O’Reilly.

This piece has been updated with comments from Lisa Bloom. Judd Legum contributed reporting.

This article was originally published at ThinkProgress on June 19, 2017. Reprinted with permission. 

About the Author: Laurel Raymond is a general reporter for ThinkProgress. Previously, she was the ThinkProgress Editorial Assistant. Prior to joining ThinkProgress she worked for Sen. Patrick Leahy (D-VT) and was a Fulbright scholar, based in southeast Turkey. She holds a B.S. in brain and cognitive sciences and a B.A. in English from the University of Rochester, where she worked and researched in the university writing center and was a member of the Michael K. Tanenhaus psycholinguistics lab. Laurel is originally from Richmond, Vermont.

Your Rights Job Survival The Issues Features Resources About This Blog