Barclays Whistleblower Identity Protected The Justice Department is reportedly investigating efforts by Barclays CEO Jes Staley to unmask a Barclays whistleblower who sent two anonymous letters to the bank’s board of directors complaining about the hiring of a mid-level executive. Barclays reportedly asked the U.S. Postal Service for assistance in tracking down the sender of...
False Claims Act Lawsuit Over Elder Care Fraud Because we are a smaller firm, we spend a lot of energy upfront evaluating potential whistleblower cases. The importance of this process was emphasized again by a Fourth Circuit decision last month in United States ex rel. Michaels v. Agape Senior Community, Inc. (4th Cir. Feb. 14, 2017) The...
Insider Trading & Other Schemes Prevalent The former head of enforcement at the U.S. Commodity Futures Trading Commission (CFTC) told Reuters that there is a “massive amount of misconduct” in futures, options and swaps markets. This fraud, which includes prohibited market manipulation, insider trading, front-running and Ponzi schemes, goes undetected because of insufficient data mining...
A Win for Internal SEC Whistleblowers On a 2-1 decision, the Ninth Circuit has affirmed the right of internal SEC whistleblowers to sue under the Dodd-Frank Act after they are retaliated against for informing their company of suspected violations of federal securities laws. The circuit split on anti-retaliation protections for internal SEC whistleblowers now consists...
Live Webcast Reviewing SEC Rule 21F-17 Brandon Lauria will speak on enforcement of SEC Rule 21F-17 at a Knowledge Group live webcast on March 9, 2017. SEC Rule 21F-17 prohibits confidentiality agreements and other measures which restrict access to the SEC whistleblower program. The one hour webcast at noon (EST) will cover the rule protecting...
Hackers and Insider Trading Remain a Threat to SEC It was more than a year ago that the U.S. Securities and Exchange Commission (SEC) cracked down on a group of hackers and traders who obtained confidential, non-public information about publicly traded companies by hacking websites for press releases. A recently released report by a cybersecurity...
DTSA and Whistleblower Immunity Last year, we applauded the carve-out for whistleblowers in the Defend Trade Secrets Act of 2016 (DTSA). However, a recent opinion of a U.S. District Court in the First Circuit undermined the protections afforded whistleblowers under the law. Instead of receiving whistleblower immunity from the lawsuit, it became a sword to...
Eligibility for SEC Whistleblower Rewards A memo circulated in early February regarding the Financial Choice Act produced by House Financial Services Chairman Jeb Hensarling (R-Texas) has proposed the elimination of SEC whistleblower rewards for co-conspirators. The SEC whistleblower program established by the Dodd-Frank Act currently prohibits the SEC from taking into account any monetary sanctions...
Decision on Confidentiality for SEC Whistleblowers A U.S. District Court in the Southern District of California has recently ruled on the validity of a SEC whistleblower’s defense to the enforcement of a company’s confidentiality agreement. In the decision, the Court accepts the validity of a public policy defense to a limited whistleblower disclosure of confidential information...
Clean Energy Fraud All Around Us We have discussed the potential for whistleblower actions grounded in the protection of the environment and compliance with environmental laws here before. Most depend on the unique circumstances of the case and the fraudulent scheme in order to fit within one of the whistleblower programs. With the Trump Administration...