SEC Whistleblower Blog

Cybersecurity Whistleblower Issues: Looking Back and Looking Ahead

January 7, 2016
Over the second half of 2015, the U.S. Securities and Exchange Commission (SEC) began to demonstrate an increasing level of interest in cybersecurity issues, as lapses in companies’ security protections have exposed consumers to large-scale violations of personal data. In this post, we’ll take a look forward at the issues that...

SEC Whistleblower Program Delays: What You Need to Know

December 21, 2015
On Dec.10, an anonymous party filed an unusual petition with the U.S. Court of Appeals for the D.C. Circuit. It was a petition for a writ of mandamus requesting that the court order the Securities Exchange Commission (SEC) to rule on an anonymous whistleblower’s (“Anonymous’s”) claim for an award under the Commission’s...

SEC Not Sympathetic to Delays in Reporting Dodd-Frank Violations

November 18, 2015
In a November 4, 2015 release from the U.S. Securities and Exchange Commission (“SEC”), the Claims Review Staff publicly announced its decision that an undisclosed Claimant’s delay in reporting fraudulent activity to the SEC was unreasonable because the entirety of the delay took place after the implementation of the anti-...

SEC Director of Enforcement Speaks About SEC’s Enforcement Priorities

November 17, 2015
On November 2, 2015, Andrew Ceresney, Director of the U.S. Securities and Exchange Commission’s (“SEC”) Division of Enforcement, delivered a speech at the Securities Industry and Financial Markets Association’s Compliance and Legal Society New York Regional Seminar regarding the SEC’s enforcement strategies related to equity...

Court Confirms Individual Liability For Directors Under SOX and Dodd-Frank

October 27, 2015
On October 23, 2015, U.S. Magistrate Judge Joseph Spero of the U.S. District Court of Northern California ruled that former General Counsel of Bio-Rad Laboratories, Inc. Sanford Wadler can proceed with his whistleblower retaliation case against the company and its board members, holding that Wadler’s internal reporting is...

SEC Continues Focus on Cybersecurity with Second Round of Examinations

October 2, 2015
On September 15, 2015, the U.S. Securities and Exchange Commission (“SEC”) announced a second round of examinations into the security industry’s cybersecurity policies in its continued focus on the securities industry’s ability to protect the integrity of the market system and customer data from cyberattack.  This examination...

SEC Fines Investment Firm for Inadequate Cybersecurity

October 1, 2015
On September 22, 2015, the U.S. Securities and Exchange Commission (“SEC”) fined investment adviser R.T. Jones Capital Equities Management Inc. $75,000 for its lack of  cybersecurity protections which contributed to a 2013 system hack that compromised the personal data of approximately 100,000 people.  In addition to the fine,...

California Court Holds Dodd-Frank Only Protects SEC Whistleblowers

September 30, 2015
On September 8, 2015, the United States District Court for the Central District of California dismissed plaintiff Jennifer Davies’ whistleblower retaliation suit against her employer Broadcom Corp., holding that the 2010 Dodd-Frank Act (“the Act”) does not protect whistleblowers who report internally rather than to the U.S....

New Report Counsels Companies To Encourage Internal Whistleblowing

September 29, 2015
On September 28, 2015, The Network, a compliance and ethics software company, released a report detailing the motivations of potential whistleblowers and urged companies to cultivate a compliant, whistleblower-friendly environment.  According to The Network’s statistics, 92% of whistleblowers report internally, which offers...

SEC Imposes $19M FCPA Sanction

September 29, 2015
  On September 28, 2015, Hitachi Ltd., a Tokyo-based conglomerate, paid a $19 million sanction imposed on the company by the U.S. Securities and Exchange Commission (“SEC”) for its violation of federal securities laws under the Foreign Corrupt Practices Act. The SEC alleges that the company unlawfully colluded with the South...

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