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. D. E. Shaw has since updated its documentation to allow employees to contact the SEC and other agencies to report possible misconduct. Continue reading
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 filed any complaints against the firm with the SEC or any other federal agency. This violates the SEC’s whistleblower protection rule for those employees. During 2021 and 2022 nearly 900 former employees had signed this release as part of their separation agreement. Continue reading
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 in investigations, enforcement actions, or filing claims with the government. This includes participating in the SEC’s Whistleblower program. Continue reading
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 sure you aren’t somehow held liable for the fraud. (Or, if you already have been involved, what you can do to minimize your liability.) Beyond that, there are other possibilities to consider. Continue reading
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, they must carefully prepare for the process and possible consequences. Continue reading
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.
Former Chairman, Securities and Exchange Commission Continue reading
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 in just the last year. Given the stakes of a successful claim, contact the experienced securities whistleblower attorneys at the Law Firm of David R. Chase and the Silver Law Group to help you file a report. As experts at the relevant law, we assist whistleblowers in making successful reports, collect financial rewards, and helping them prevent or respond to retaliation. A few recent cases to demonstrate how the laws apply in practice. Continue reading
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 against Disney, is a certified Public Accountant (CPA) who was hired as a financial analyst for Disney Financial Services in 1999. Her complaint states that “Throughout her employment, Plaintiff worked incredibly hard and consistently received positive performance reviews.” Continue reading
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 say that the whistleblowers were harmed investors themselves. Continue reading