World-class Representation for Whistleblowers Who Report ESG Violations

Whistleblowers who report violations of Environmental, Social and Governance (ESG) requirements serve a vital role in protecting investors, ensuring that corporations do not violate environmental laws, and are governed according to the strict requirements of the US securities laws. Compliance with ESG requirements serves both public interests and protects investors from damages related to environmental factors such as climate change.

Former SEC Acting Chair and Commissioner Allison Herren Lee helped propel ESG issues to the forefront of the agency’s agenda. She launched an enforcement task force to evaluate and pursue tips, referrals, and whistleblower complaints on ESG-related issues, helped craft rules that directed the SEC to gather public input on corporate climate change disclosures, and helped clamp down on “greenwashing.” She is recognized as the national and international leader on ESG issues.

Former Commissioner Lee leads KKC’s groundbreaking efforts to ensure that SEC rules governing environmental ESG issues are strictly enforced, and that whistleblowers who raise ESG issues can benefit from the best representation available anywhere in the United States.

Allison Lee - Of Counsel - Kohn, Kohn & Colapinto LLP

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“[Whistleblowers] display extraordinary bravery to expose fraud and wrongdoing, and to shine light in some very dark places. In doing so, they reinforce our fundamental values – that the rule of law matters, and no one is, or should be, above the law… They help create transparency, and from transparency flows crucial accountability.”

Whistleblowers Fight Tremendous Odds and Deserve Better
Statement by Allison as SEC Commissioner, September 23, 2020
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Environmental, social, and governance (ESG) factors are increasingly important to investors and stakeholders who want to invest in companies that demonstrate responsible and sustainable practices.

However, some companies may engage in fraudulent practices related to their ESG practices, such as misrepresenting their sustainability practices, social impact, or corporate governance to make them seem more responsible and sustainable than they actually are. If you are aware of ESG fraud or regulatory violations happening at your company, you have the right to anonymously and confidentially report your concerns to the SEC and qualify for large financial rewards, if your information holds the wrongdoer’s accountable.

The U.S. Securities and Exchange Commission (SEC) has increased enforcement efforts against ESG-related misconduct. Through the SEC Whistleblower Program, qualified whistleblowers, individuals who voluntarily report original information that leads to a successful enforcement action, are entitled to monetary awards and anti-retaliation protections. Examples of enforcement actions taken by the SEC are set forth in the below list.

Settlement/Penalty Amount: $233,000

Litigation Release
SEC Complaint

Settlement/Penalty Amount: $2,739,121

Litigation Release
SEC Complaint
Final Order

Settlement/Penalty Amount: $7,557,653

Litigation Release
SEC Complaint

Settlement/Penalty Amount: $9,500,000

SEC Cease-and-Desist Order

Settlement/Penalty Amount: [court proceedings underway]

Litigation Release
SEC Complaint

Settlement/Penalty Amount: $300,000

SEC Press Release
SEC Order

Settlement/Penalty Amount: [court proceedings underway]

SEC Press Release
SEC Complaint

Settlement/Penalty Amount: $1,500,000

SEC Press Release
SEC Order

Commissioner Lee’s Statements on ESG

Frequently Asked Questions

Frequently Asked Questions

What is ESG Fraud?

ESG fraud refers to illegal conduct by companies related to their environmental, social, and governance (ESG) practices. There are numerous regulations governing ESG requirements.

ESG fraud can take many shapes and forms, but often includes misrepresenting a company’s sustainability practices, social impact, or corporate governance to make the company seem more responsible and sustainable to investors than it is.

Reporting violations of ESG requirements or fraud is important because it can help to hold companies accountable for engaging in such illegal practices and prevent financial losses and reputational damage for investors.

Can I blow the whistle on ESG fraud or violations?

If you are aware of ESG violations happening at your company, you can report this misconduct confidentially as an anonymous whistleblower under the SEC’s Dodd-Frank Act program. You should first contact a whistleblower attorney who can help you prepare a whistleblower complaint and file it with the appropriate regulatory agency. To file anonymously you are required to hire an attorney.

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Rules for Whistleblowers

Learn how whistleblowers have saved lives, stopped frauds, protected their jobs, and earned million-dollar rewards for doing the right thing.