New York-based hedge fund investment and technology development firm D. E. Shaw has settled with the SEC over charges that it violated the rights of current and former employees when it raised “impediments” for them to become whistleblowers. The SEC also fined D. E. Shaw $10M to settle the charges.…
The SEC settled charges against CRBE, a Dallas-based commercial real estate services and investment firm, for using a clause in their separation agreements that violated the Securities and Exchange Commission’s whistleblower protection rule. Departing employees could receive separation pay only if they signed a release that stated they had not…
Can a company prohibit former employees from speaking to federal regulators, such as the SEC, and function as a whistleblower? They can certainly try, but it is still illegal. Monolith Resources, LLC, based in Nebraska, included language in their employment separation agreements prohibiting departing employees from recovering money through participation…
What should you do if you’ve encountered defense contractor fraud and you want to stop it? Practically speaking, start by getting qualified legal representation as soon as possible. You need legal protection, to understand the best ways to insulate yourself from retaliation or other negative results, and, importantly, to make…
Whistleblowers help maintain the integrity and fairness of U.S. financial markets. They are a vital watchdog and play an essential role in the securities markets. The whistleblower process can be vigorous and draining and comes with risk. Once a whistleblower decides to take a moral stand on what is right,…
Let me be clear: Retaliation protections are a key component of the whistleblower program, and we will bring charges against companies or individuals who violate the anti-retaliation protections when appropriate. —Jay Clayton, Former Chairman, Securities and Exchange Commission It’s axiomatic that whistleblowing only works if people are willing to come…
The Securities and Exchanges Commission (SEC) has been awarding millions of dollars to whistleblowers in recent years—and the Commission has been awarding larger bonuses, more frequently. In the first decade of the SEC whistleblowing program, it had awarded $942 million to whistleblowers—but more than a third of that—$380 million—was given…
Scott Silver, a whistleblower attorney and publisher of secwhistleblowerlawyers.net, was recently featured in a video on financialadvisoriq.com about the potential risks of becoming a whistleblower. Boca Raton attorney James Sallah was also featured in the video. Scott Silver and James Sallah frequently collaborate on cases and recently represented an SEC…
A senior financial analyst at The Walt Disney Company internally reported billions of dollars of alleged financial irregularities and claims that she was harassed and retaliated against for speaking out. In 2017 she filed an SEC whistleblower complaint. Now she is suing Disney. Sandra Kuba, the plaintiff in a lawsuit…
On Friday, November 15, 2019 The Securities and Exchange Commission (SEC) announced that a whistleblower award of more than $260,000 had been given to three people who jointly alerted the agency to a “well-concealed fraud targeting retail investors.” The SEC’s press release does not identify the fraud specifically, but does…