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Subject to Inquiry

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Category Archives: Whistleblowers

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Corporate Compliance, SEC, Whistleblowers

Who is Protected by the Sarbanes-Oxley and Dodd-Frank Whistleblower Anti-Retaliation Provisions? The Supreme Court and SEC Weigh In.

The Sarbanes-Oxley Act (“Sarbanes-Oxley”) and Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) whistleblower anti-retaliation provisions have been the subject of great debate as to what categories of individuals and activities are protected. These issues have developed significantly in recent weeks with the Supreme Court’s decision in Lawson v. FMR LLC, involving the application … Continue Reading
False Claims Act, Qui Tam

Fourth Circuit Orders $24 Million in FCA Civil Penalties Despite No Proven Economic Harm

Companies that conduct business with the government should pay attention to a recent ruling from the Fourth Circuit. The ruling opens the door to increased False Claims Act (FCA) liability through the FCA’s civil penalties provision. Through this provision, the FCA imposes civil penalties of $5,500 to $11,000 for each false claim submitted to the … Continue Reading
Dodd-Frank, News, SEC, Whistleblowers

The 2013 Dodd-Frank Whistleblower Program Annual Report

In November, the SEC Office of the Whistleblower (“OWB”) released its 2013 Annual Report on the Dodd-Frank Whistleblower Program (the “Report”). The Report details the number of whistleblower tips and complaints received and the amount of whistleblower awards made during fiscal year 2013.  Whistleblower Complaints and Tips FY 2013 According to the Report, the SEC … Continue Reading
Compliance, Dodd-Frank, SEC, SEC Enforcement, Securities Fraud, Securities Litigation, Whistleblowers

A New Era of Openness, or Open Season on Hedge Funds?

In a recent speech before the Managed Funds Association, U.S. Securities & Exchange Commission (SEC) Chair Mary Jo White discussed what she called a “new era of transparency and openness” for the private funds industry, including hedge funds. Her address largely provided an overview of two significant pieces of legislation, namely, the Dodd-Frank Act, which … Continue Reading
Corporate Compliance, False Claims Act, Qui Tam, Whistleblowers, White Collar Crime

Self-Reporting Violations to OIG in Healthcare Cases: Recent Developments

Recent developments in the Department of Health and Human Services (HHS) Office of the Inspector General (OIG) and Congress have changed the calculus of healthcare providers by making self-disclosure easier and more beneficial, while simultaneously providing OIG with greater ability to punish companies and individuals who fail to report but then after a government investigation … Continue Reading
Dodd-Frank

Documentation Critical to Dodd-Frank Compliance Under Proposed Supervisory Guidance

Financial institutions should be prepared to increase their emphasis on documentation to avoid running afoul of federal regulatory authorities. Last week the OCC, Federal Reserve and FDIC issued proposed joint supervisory guidance for company-run stress testing under the Dodd-Frank Act (DFA).[1] Section 165(i)(2) of the DFA mandates annual internally run stress testing for financial companies … Continue Reading
CFPB, Dodd-Frank, SEC Enforcement, Securities Fraud, Securities Litigation, Whistleblowers, White Collar Crime

CFPB Refers First Case for Criminal Prosecution

On May 1, 2013, federal prosecutors in the Southern District of New York brought the first criminal case based on a referral from the Consumer Finance Protection Bureau (CFPB) in United States v. Mission Settlement Agency. In the recently unsealed indictment, federal authorities charge Mission Settlement Agency (Mission) and four of its employees—including Mission’s principal, … Continue Reading
False Claims Act, Qui Tam

Washington Becomes 28th State With Stepped Up Fraud Law

          Editor’s note:  The following entry was written by Jeffrey Rogers, a partner in the firm’s Chicago office.   Late last month, Washington State Governor Christine Gregoire signed into law the state’s first Medicaid Fraud False Claims Act.  With the signing, Washington became the twentieth state to pass such legislation The incentive for Washington was financial, as … Continue Reading
Dodd-Frank, Whistleblowers

CFTC Appoints Chief of New Whistleblower Office

The Commodity Futures Trading Commission announced last week that Vincente Martinez has been appointed as the first director of the Commission’s recently created Whistleblower Office.  According to CFTC Chairman Gary Gensler: The CFTC’s Whistleblower Office, which the agency implemented under the Dodd-Frank Act, provides the public an avenue to help catch misconduct in the markets … Continue Reading
Dodd-Frank, Whistleblowers

SEC’s Whistleblower Office Releases Annual Report

In November, the SEC’s Office of the Whistleblower released its Annual Report on the Dodd-Frank Whistleblower Program, detailing the quantity, quality and nature of the complaints it received during its first several weeks of operation, and describing the Commission’s responses to those tips.  The Report draws on only seven weeks of data and, therefore, provides … Continue Reading
Dodd-Frank, Whistleblowers

CFTC Whistleblower Program Goes Into Effect

The U.S. Commodity Futures Trading Commission’s (CFTC) Whistleblower Incentives and Protection program went quietly into effect on October 24th.  The CFTC rules (available here) have not drawn as much attention as the strikingly similar SEC whistleblower program.  The comparative scarcity of public commentary, however, does not fairly reflect the potential impact of the CFTC’s program … Continue Reading
Dodd-Frank, Whistleblowers

SEC Whistleblower Program Effective, But Future Uncertain

Last Friday, August 12th, the U.S. Securities and Exchange Commission’s Whistleblower Incentives and Protection program became effective.  But a recent U.S. Court of Appeals decision may provide ammunition for opponents of the program.  As discussed at length in our white paper, the recently adopted SEC whistleblower program rewards whistleblowers who voluntarily submit to the SEC … Continue Reading
Dodd-Frank, Whistleblowers

CFTC Adopts Final Whistleblower Rules

On Thursday, August 4th, during a public meeting to consider the adoption of several final rules under the Dodd-Frank Act, the U.S. Commodity Futures Trading Commission (CFTC) voted 4-1 in favor of adopting final regulations implementing its Whistleblower Incentives and Protection program.  According to a Fact Sheet available on the CFTC website, Section 748 of … Continue Reading
Dodd-Frank, Whistleblowers

CFTC Pushes Back Vote on Whistleblower Rules

A great deal has been written on this blog and elsewhere about the recently adopted SEC Whistleblower Incentives and Protection Program.  Much less has been said, however, about the U.S. Commodity Futures Trading Commission’s (CFTC) proposed whistleblower scheme.  In addition to requiring the SEC to devise its whistleblower rewards program, The Dodd–Frank Wall Street Reform … Continue Reading
SEC Enforcement, Securities Litigation, Whistleblowers

SEC Adopts New Whistleblower Rules

This morning, the SEC adopted a final set of rules implementing its Whistleblower Incentives and Protection program.  The implications of the rulemaking – among the most eagerly anticipated of any rules promulgated under the Dodd-Frank Act – are significant.  A comprehensive analysis of the final rules is in McGuireWoods’ white paper, The Rules for Whistleblowers: Significant … Continue Reading
Dodd-Frank, Whistleblowers

No Final Whistleblower Rules…Yet

Last November, the Securities and Exchange Commission proposed a highly-publicized whistleblower program under the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The proposed rules, described in greater detail in McGuireWoods’ white paper, offer handsome rewards to individuals who provide the SEC with high-quality information that leads to a successful enforcement action.  According the SEC’s website, the … Continue Reading
Dodd-Frank, Whistleblowers

New Rules (and Incentives) for Would-be Whistleblowers

On November 3rd, the SEC proposed a program under the Dodd-Frank Wall Street Reform and Consumer Protection Act that rewards whistleblowers who voluntarily provide original, high-quality information that leads to a successful enforcement action in which the SEC obtains sanctions in excess of $1 million.  The Proposed Rule offers would-be whistleblowers an award of 10-30% … Continue Reading
Dodd-Frank, Whistleblowers

Will Dodd-Frank Create a Whistleblower Windfall?

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which President Obama signed into law on July 21, 2010, has been heralded as offering several significant changes in Wall Street regulation.  However, one of its least publicized provisions—the so-called whistleblower “bounty”—may prove to be among its most impactful. Companies both large and small … Continue Reading