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Whistleblowers Need Encouragement, Not Roadblocks

Friday, 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

Curt Verschoor - Accountingweb.com