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Whistleblowers Need Encouragement, Not Roadblocks
October 11, 2013
The Dodd-Frank Act expanded existing whistleblower programs,
providing cash rewards for significant information given to the SEC.
Despite these efforts to stimulate whistleblowing, companies are putting
limits on how much (or how little) their employees can report fraud.
It's well understood that a whistleblower is the most important
source of evidence in detecting fraud and other misdeeds and convicting
the criminal or enforcing a civil statute. The whistleblower program at
the US Securities and Exchange Commission (SEC) has allowed many
individuals to report securities laws violations. But companies and
their counsel are reportedly impeding would-be whistleblowers in
violation of the law. In addition, the IRS and US Commodity Futures Trading Commission (CFTC) whistleblower initiatives appear to require streamlining to improve their effectiveness...Read More