- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Jeff Dale2024-07-29T17:07:00
The Securities and Exchange Commission (SEC) announced its second $37 million whistleblower award in as many weeks with four claimants vying for the payout, but only one reaping the benefits.
The SEC, who keeps the identity of whistleblowers anonymous, said in a press release Friday that the whistleblower reported misconduct internally, which prompted the company to conduct an internal investigation, eventually leading to the company notifying the agency of its findings.
Additionally, the agency acknowledged the whistleblower was retaliated against by their supervisors and other senior employees, “including receiving a negative performance review and a sharply lower bonus than the previous year, despite meeting the performance goals the firm had set,” the SEC said in its order.
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Two pairs of claimants will receive whistleblower awards totaling more than $98 million and $24 million, respectively, for information they provided to the Securities and Exchange Commission that led to an enforcement action.
A whistleblower will be paid $37 million by the Securities and Exchange Commission for providing original, credible information that led to a successful enforcement action.
Anonymous employees of OpenAI accused the company of requiring employees to sign nondisclosure agreements (NDAs) that “prohibited and discouraged” them from reporting securities law violations to federal regulators.
Discrimination against whistleblowers in the U.K. has risen to such a level that the government may need to actively pursue plans to afford greater legal protection, as well as introduce financial awards to compensate for their “career suicide.”
The Department of Justice released the details of its long-awaited corporate whistleblower awards pilot program that will prioritize reporting in areas of corporate crime not currently covered by existing whistleblower programs.
The Consumer Financial Protection Bureau is warning companies against intimidating potential whistleblowers by forcing them to sign broad nondisclosure agreements to deter misconduct from coming to light.
