ALERT
Take Steps to Protect Yourself and Qualify for a Reward!
In February 2018, the Supreme Court of the United States ruled in Digital Realty Trust v. Somers that corporate whistleblowers are not protected under the Dodd-Frank Act if they report only to internal compliance programs. The Court held that a whistleblower must report to the Securities and Exchange Commission to obtain anti-retaliation protections. Although this ruling only concerns the Dodd-Frank Act, its interpretation of this provision could apply to other whistleblower laws that don’t explicitly protect internal whistleblowers. This includes OSHA whistleblower laws, banking whistleblower laws, and most environmental whistleblower laws.
- 15 USC § 78u-6
- 17 C.F.R. § 240.21F-1 through F-17
- 17 C.F.R. § 249.1800 & 1801
- 15 U.S. Code § 78j–1 – Audit requirements (Required under the Sarbanes-Oxley Act of 2002).
- 2011 Compliance Rules Federal Sentencing Guide, Chapter Eight, Part B(2) – Effective Compliance and Ethics Program
- 48 CFR Ch. 1 – Subpart 3.9 Whistleblower Protections for Contractor Employees
- 48 CFR Ch. 1 – Subpart 3.10 Contractor Code of Business Ethics and Conduct
- 48 CFR Ch. 1 – 52.203–13 Contractor Code of Business Ethics and Conduct
- 17 C.F.R. 205 – Standards of Professional Conduct for Attorneys
- Brown & Root v. Donovan, 747 F2d 1029. – auditor not protected.
- Kansas Gas & Elec. v. Brock, 780 F.2d 1505 – auditor protected.
- Mackowiak v. University Nuclear, 735 F.2d 1159 – auditor protected.
- Van Asdale v. International Game Tech., 577 F.3d 989 – Attorney protected.
- Willy v. ARB, 423 F.3d 483 – Attorney protected.
- In the Matter of Adriana Koeck, No. 14-BD-061 (2014)
- SEC Awards $1.6 Million to Compliance Officer for Protecting Investors
- Stephen Kohn, “The SEC’s Final Whistleblower Rules & Their Impact on Internal Compliance” (West Law Publishing, Oct. 2011)
- Compliance Professional Awarded $300,000 by SEC
- Speech by SEC Chairman Mary L. Schapiro: Opening Statement at SEC Open Meeting — Whistleblower Program (May 25, 2011)
- SEC Press Release 2015-73 (April 22, 2015) (compliance official awarded $1.5 million)
Compliance professionals are on the front line of uncovering and reporting fraud. However, the pressure to change audit reports came from the top.
- Transforming Compliance: Emerging Paradigms for Boards, Management, Compliance Officers, and Government, Michael D. Greenberg, Rand Center for Corporate Ethics and Governance (2014)
- Culture, Compliance, and the C-Suite: How Executives, Boards, and Policymakers Can Better Safeguard Against Misconduct at the Top,Michael D. Greenberg, Rand Center for Corporate Ethics and Governance (2013)
- For Whom the Whistle Blows: Advancing Corporate Compliance and integrity efforts in the era of dodd-frank, Rand Center for Corporate Ethics and GovernanceMichael D. Greenberg, Rand Center for Corporate Ethics and Governance (2011)
- Avoiding The Perils and Pitfalls of Internal Corporate Investigations: Proper Use of Upjohn Warnings, Jeffrey Eglash et al. (2010)
- Impact of Qui Tam Laws on Internal Compliance: A Report to the Securities Exchange Commission, National Whistleblower Center (2010)
- Directors as Guardians of Compliance and Ethics Within the Corporate Citadel: What the Policy Community Should Know, Michael D. Greenberg, Rand Center for Corporate Ethics and Governance (2010)
- From Enron to Madoff: Why Many Corporate Compliance and Ethics Programs Are Positioned for Failure, Donna Boehme (2009)
- Redefining the Relationship of the General Counsel and Chief Compliance Officer, Michael Volkov, CEO, The Volkov Law Group