Thanks to the DFA, SEC awarded since 2011, $153m to 43 whistleblowers.
In the Somer case, the vice president of a public company reported possible securities law violations to senior management.
One of the acts conferring Dodd-Frank whistleblower protection under Section 21F is making the disclosures required by SOX, which protects those reporting securities laws violations through internal channels.
Yet Section 21F also defines the word “whistleblower” to require a person to provide information about a violation to the SEC, and Somers had not done that before being fired.
Therefore, the issue was whether the fact that the plaintiff did not report to the SEC meant he was not a “whistleblower” and hence could not sue under Dodd-Frank.
Pecuniary fines held but detention period significantly reduced. Is it, hopefully, the begin of a path in favour of whistleblowing in Europe?
The French parliament has recently doubled the proscription deadline for some forms of corruption, misuse of public goods etc, but between the lines you can also find the so-called “hidden/concealed” mishandling, which didn’t have a prescription term earlier on.
To-be-launched yet, but a promising KYC system (Know Your Customer, for the records). This software allegedly simplifies trust and complex corporate structures and extract trust deeds.
UK. In a phase when the whole world is giving more attention to whistleblowing, where US and EU are according more protection to whistelblowers, in order to tackle financial crimes, what’s better than leaving EU to not be subject to this course?
UK is reportedly trying to criminalise whistleblowing by embittering jail from 2 to 14 (!) years and including such actions within the definition of “espionage”.
Needless to say that such move is not meeting the favour of lawyers and jurists and that the most important organisations involved have not been consulted.
$10b washed across UK and US and only $630m (425 NYDFS + 2014 in FCA) of fine?
DB allegedly purchased stock from its Moscow HQ and sold it to UK and US markets between 2012 and 2015.
The court finally tilted towards ZeniMax for breach of Trade Secret and IP.
Another juicy article on Sapin II, aka the fresh new French Law on corruption.
Some juicy details:
- France was one of the few countries lagging behind because of a lack of legal provision to counterfight corruption and bribery
- this new laws sets up an anti-corruption agency, enlarge its applicability through the extraterritoriality principle.
- This law will tackle the C-Suite of companies with 500 employees or more, with at least one parent company HQ-ed in France and whose gross profits exceeds E100M
- It will also impose some internal anti-corruption programs, containing (A) a corporate code of conduct, (B) an internal alert system, (C) a regularly-updated risk map, (D) clients’ integrity reviews, (E) accounting controls, (F) a employee’s training, (G) a sanction policy and (H) internal controls and evaluations.
- The law will kick off as of 1/7/20117.
- Sanctions can peak up to E 200’00 per individual and E 1 M per company.
- Sapin II additionally tackles the definition of whistleblower.
Personal remarks: great to clear up the whistleblower detail but perhaps applicability thresholds could have been lowered. It’s not too hard to hinder corporate structure with intermediate holdcos in tax heavens.