SEC Whistleblower Blog

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...

Second Circuit’s Dodd-Frank Internal Reporting Decision Creates Circuit Split

September 11, 2015
On September 10, 2015, the Second Circuit Court of Appeals held that plaintiff Daniel Berman had stated a claim of unlawful retaliation under the whistleblower-protection provisions of the 2010 Dodd-Frank Act even though he alleged he was fired for reporting accounting fraud internally rather than to the U.S. Securities and...

Cybersecurity Front and Center in SEC’s Recent $100M Insider-Trading Enforcement Action

August 28, 2015
By Alexis H. Ronickher On August 13, 2015, the Securities and Exchange Commission (SEC) announced its first enforcement action involving cybersecurity.  In SEC v. Dubovoy et al., the SEC charged 32 defendants for taking part in an insider-trading scheme.  Over a five-year period of time, the hacker defendants hacked into at...

SEC Pushes for Amicus Brief to Clarify Dodd-Frank Internal Whistleblower Protection

August 11, 2015
In an unusual request to a trial court, the U.S. Securities and Exchange Commission moved a California federal court on August 7th, 2015, to allow the commission to file an amicus brief on behalf of Sanford Wadler, previously in-house counsel for Bio-Rad Laboratories, Inc., who is suing his former employer for retaliation in...

SEC Pushes for Amicus Brief to Clarify Dodd-Frank Internal Whistleblower Protection

August 11, 2015
In an unusual request to a trial court, the U.S. Securities and Exchange Commission moved a California federal court on August 7th, 2015, to allow the commission to file an amicus brief on behalf of Sanford Wadler, previously in-house counsel for Bio-Rad Laboratories, Inc., who is suing his former employer for retaliation in...

Compliance Officer Receives SEC Whistleblower Award

April 23, 2015
A whistleblower who provided information to the U.S. Securities and Exchange Commission (SEC) will receive a financial whistleblower award of between $1.4 million and $1.6 million, according to a press release issued yesterday by the SEC.  The Commission announced it will present the whistleblower award to an anonymous...

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