Archive for the ‘SEC’ Category

On July 31, 2014, the U.S. Securities and Exchange Commission (SEC) announced in a press release that an anonymous whistleblower would be awarded over $400,000 after reporting fraud to the SEC.  The whistleblower first encouraged the company to address the issue internally.  Once it became clear that the company would not be addressing the claims [...]

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On July 23, 2014, the U.S. Securities and Exchange Commission (SEC) released an order denying a whistleblower’s claim for awards.  In order to qualify for awards from the SEC’s Whistleblower Program, whistleblowers must submit award applications to the Office of the Whistleblower within 90 days of the date of the respective notices of covered action.  [...]

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On July 29, 2014, the Wall Street Journal (WSJ) released a detailed news report concerning the Securities and Exchange Commission (SEC) Whistleblower Program.  The WSJ obtained demographic information about the 6,500 people who have submitted whistleblower claims to the SEC since the start of its whistleblower program in mid-2011.  To file a complaint with the [...]

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On July 28, 2014, the U.S. Securities and Exchange Commission (SEC) charged Smith & Wesson Holding Corporation with violating the Foreign Corrupt Practices Act (FCPA).  According to the SEC’s claims, the firearms manufacturer had employees make illegal payments to foreign officials in attempts to secure contracts overseas between 2007 and 2010. Only one contract was [...]

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On July 24, 2014, Louis Clark, President and Corporate/Financial Accountability Director for the Government Accountability Project (GAP), launched a petition to SEC Chair Mary Jo White asking the SEC to strengthen its Whistleblower Program.  Since the passage of the Dodd-Frank Act in 2010, financial corporations have made increased efforts to silence whistleblowers using gag-orders and [...]

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According to Gibson Dunn’s 2014 Mid-Year FCPA Update, the Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) have been aggressively pursuing enforcement actions against both individuals and companies who violate the Foreign Corrupt Practices Act (FCPA).  According to the report, the FCPA’s anti-bribery provisions make it illegal for companies to offer [...]

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In recent months, the U.S. Securities and Exchange Commission (“SEC”) has taken several enforcement actions against individuals and entities who perpetrate investment scams on unwitting investors, which are commonly referred to as “Ponzi” or “pyramid” schemes.  The SEC has noted that “curtailing Ponzi schemes and holding accountable the individuals responsible for these scams is a [...]

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On June 16, 2014, the U.S. Securities and Exchange Commission (“SEC”) charged Paradigm Capital Management with violations of securities law for engaging in unlawful transactions and retaliating against a whistleblower who reported Paradigm’s illegal activity to the SEC.  This marks the first time that the SEC has brought an enforcement action against an employer under [...]

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Another federal court has ruled that internal reports of securities violations are protected by the whistleblower protection provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”).  On May 21, 2014, the United States District Court for the District of Nebraska held in Bussing v. COR Clearing, LLC, et al., that Julie [...]

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The Securities and Exchange Commission (“SEC”) announced on Tuesday, June 3, 2014, that it had awarded two whistleblowers a total of $875,000 for information they provided to the SEC that led to a successful enforcement action.  Given its commitment to ensuring the anonymity of SEC whistleblowers, the agency declined to provide the identities of the [...]

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