Posted in Corporate Crimes/Insider Trading/Whistleblowing

Whistleblower awarded $4 million by SEC

Thanks to the DFA, SEC awarded since 2011, $153m to 43 whistleblowers.


Posted in Corporate Crimes/Insider Trading/Whistleblowing

Key federal court broadens whistleblower protection

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.


Posted in Corporate Crimes/Insider Trading/Whistleblowing

Government advisers accused of ‘full-frontal attack’ on whistleblowers

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.


Posted in Corporate Crimes/Insider Trading/Whistleblowing

A New Era in French Anticorruption Enforcement: What Companies Should Know About the Newly Enacted Sapin II Law

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.