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Cady Bar the Door Insight & Commentary on SEC Enforcement Actions and Related Issues

Category Archives: Whistleblowers

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Freedom to Retaliate against Foreign Whistleblowers May Not Be as Much Fun as It First Appears

Posted in Compliance, FCPA, Whistleblowers

What I’m about to say is grossly oversimplified, but here goes: The Dodd-Frank Act’s whistleblower provisions have two primary prongs.  The first says that an individual who voluntarily provides the SEC with original information resulting in an enforcement action in which the SEC collects over $1 million in sanctions will be eligible for a financial… Continue Reading

SEC Files First Whistleblower Retaliation Case

Posted in Whistleblowers

Well, you can’t say Sean McKessy didn’t warn you.  The chief of the SEC’s whistleblower office has been warning for months at least that his group was looking to bring a stand-alone case enforcing the anti-retaliation provisions of the Dodd-Frank whistleblower rules. On Monday, the Commission filed a settled administrative action in which Albany, New… Continue Reading

For Municipal Bond Issuers, SEC’s New Cooperation Initiative Could Be a Good Idea (Unless It’s a Bad Idea)

Posted in Municipal Securities, Whistleblowers

You know how every few years libraries will offer an amnesty program and give delinquent borrowers a chance to bring in their old books without prohibitive late fines?  The SEC is sort of trying out that approach with its new Municipalities Continuing Disclosure Cooperation (MCDC) Initiative™. Rule 15c2-12 Some brief background here:   Rule 15c2-12 generally… Continue Reading

“The World’s Largest Ponzi Scheme”

Posted in Whistleblowers

Regarding my last post on whistleblowers and tipsters at the SEC, I wanted to make one more related point.  Many people like to yell at the SEC for not grasping the gravity of Harry Markopolos’s complaints about Bernie Madoff.  After all, he told them flatly it was the biggest Ponzi scheme in history.  How hard… Continue Reading

Three Thoughts about the SEC’s Third Whistleblower Award

Posted in Whistleblowers

On October 1st, the SEC announced its third award paid under the Dodd-Frank whistleblower provisions.  This time, it was a big one.  The SEC paid the whistleblower in question more than $14 million after this person gave information leading to “an SEC enforcement action that recovered substantial investor funds.”   Several things occur to me about… Continue Reading

SEC Charges Allianz with FCPA Violations

Posted in FCPA, Non-scienter-based Violations, Whistleblowers

On December 17th, the SEC brought a settled administrative FCPA action against Allianz SE, a German insurance company with a subsidiary in Indonesia.  The order does not allege violations of the FCPA’s antibribery provisions, but does claim violations of its books-and-records and internal controls provisions. As the summary in the SEC’s order says, the proceedings… Continue Reading

Three More Thoughts about Securities Enforcement Forum 2012

Posted in Insider Trading, SEC Litigation, Whistleblowers

Several more things from the Securities Enforcement Forum 2012 occurred to me after my last post, and I thought I would note them here. Rajat Gupta First, in a discussion of recent insider trading cases, Judge Sporkin supposed that Rajat Gupta might have avoided criminal prosecution if he had settled the SEC’s initial administrative case… Continue Reading

Whistleblower!

Posted in Whistleblowers

Here at the Cady Bar the Door motion pictures division, we have been hard at work with our robot staff on Whistleblower!, a film depicting the whistleblower provisions of the Dodd-Frank Act of 2010.  You can view this 2013 Oscar candidate here: We hope you like it, and we are available for birthday parties and bar… Continue Reading

SEC’s Secret Payments Brigade Marches On

Posted in Accounting Fraud, Whistleblowers

On Monday the SEC’s Miami Regional Office brought a settled enforcement action against Gilbert Fiorentino, a former director and officer of Systemax, Inc., a Long Island-based company that sells personal computers and other consumer electronics through its websites, retail stores, and direct mail catalogs.  The SEC’s complaint alleges that over the five years from 2006… Continue Reading

SEC and CFTC Whistleblower Chiefs Speak

Posted in Whistleblowers

Sean McKessy and Vince Martinez, the respective chiefs of the whistleblower offices for the SEC and CFTC, spoke last week on a webinar hosted by Securities Docket, and made a number of salient points about their programs.  You can listen to the 70-minute webinar here.  Some of the more interesting issues (to me) follow: Internal… Continue Reading

SEC Posts Whistleblower List (Means Little)

Posted in Whistleblowers

On February 1st, the SEC’s Office of the Whistleblower released its latest list of candidates for which a whistleblower might claim an award.  What cases are eligible?  As you may know, the Dodd-Frank Act gave the SEC authority to give cash bounties to whistleblowers in certain instances, and the Act was passed on July 21,… Continue Reading