Whistleblowers


Avaya

Avaya discloses ICFR weaknesses linked to whistleblower logs

2022-12-02T18:23:00+00:00By

Avaya Holdings disclosed its assessment of internal control over financial reporting in its fiscal year 2021 annual report can’t be relied upon, along with acknowledging weaknesses in its ethics and compliance program.

Whistle

SEC adds whistleblower retaliation charges against ex-NS8 CEO

2022-12-01T21:11:00+00:00By

Adam Rogas, the former CEO of cyber-fraud prevention company NS8 who was sentenced to five years in prison for fraud, now faces charges of impeding and retaliating against a whistleblower following an amended complaint from the Securities and Exchange Commission.

PPP loan

DOJ seeking Rennova Health return pandemic relief funds

2022-11-29T13:39:00+00:00By

The Department of Justice requested Rennova Health repay Covid-19 relief funds it received in 2020 as part of a whistleblower lawsuit against the healthcare services provider alleging ineligible use of the money.

BP

Ex-BP trader’s failed whistleblower claim to raise U.K. reporting bar?

2022-11-21T17:50:00+00:00By

A U.K. employment tribunal’s ruling that a former BP employee was not entitled to whistleblower protection has shone a spotlight on the legal issues workers must consider ahead of speaking up.

SEC office

Big penalties, admissions fuel record SEC enforcement year

2022-11-16T22:01:00+00:00By

The Securities and Exchange Commission collected more than $6.4 billion in enforcement penalties, fees, and interest in fiscal year 2022—the largest amount in the agency’s history and a massive increase over a transition year in 2021.

Justo_Web

1MDB whistleblower talks of ‘paying the price’ for doing the right thing

2022-11-07T16:22:00+00:00By

The experience of Xavier Andre Justo—the former Swiss banker turned whistleblower in the 1MDB scandal—shows those who speak up about bribery and corruption are often the only victims of the supposed “victimless crimes” they report.

EHR

ModMed settles FCA, kickback allegations with DOJ for $45M

2022-11-02T19:36:00+00:00By

Modernizing Medicine paid $45 million to settle false claims allegations levied by the Department of Justice it received kickbacks and made improper payments to providers to increase its business.

JPMorgan Chase

Former JPMorgan compliance exec settles with bank over SOX whistleblower suit

2022-10-26T15:23:00+01:00By

Shaquala Williams, a compliance executive who sued JPMorgan Chase after she said she was fired for blowing the whistle on deficiencies in the bank’s anti-money laundering compliance program, agreed to settle her case.

Biogen

Pharma, whistleblower lessons learned from $900M Biogen settlement

2022-10-11T15:45:00+01:00By

Experts discuss the ramifications of Biogen’s $900 million settlement for False Claims Act violations, including the $266.4 million whistleblower bounty in the case believed to be the largest single award under any government program.

ExxonMobil

ExxonMobil to pay reinstated employees $800K in OSHA whistleblower ruling

2022-10-10T15:13:00+01:00By

Oil and gas giant ExxonMobil must reinstate two previously fired employees and pay them more than $800,000 in back wages, interest, and compensatory damages after the Occupational Safety and Health Administration determined the terminations to be illegal.

Dominik Waszczynski

Q&A: Hellmann compliance head on choosing a whistleblower tool

2022-10-06T15:11:00+01:00By

Dominik Waszczynski, head of global compliance at Hellmann Worldwide Logistics, shares with Compliance Week the decision-making process that led to the company’s selection of a new and improved whistleblower hotline tool.

Biogen

Biogen finalizes $900M settlement in false claims whistleblower suit

2022-09-27T19:04:00+01:00By

Biogen finalized a $900 million settlement concerning alleged kickbacks it paid to doctors to induce them to prescribe the company’s drugs and not those of its competitors.

DOJ building

Florida business settles landmark FCA whistleblower case involving PPP loan

2022-09-26T19:23:00+01:00By

A Florida-based investment fund will pay approximately $22,000 as part of a settlement resolving the first False Claims Act whistleblower case involving a Paycheck Protection Program loan in which the United States intervened.

Work remote

NAVEX survey: Remote work, whistleblower trends to test speak-up cultures

2022-09-13T18:15:00+01:00By

Maintaining a speak-up culture requires increased attention from businesses with many employees still working remote, putting more of an onus on the reporting function, according to the latest NAVEX study.

Contech

Former Contech exec imprisoned 18 months for bid-rigging scheme

2022-09-12T16:39:00+01:00By

Brent Brewbaker, a former executive for civil engineering firm Contech Engineered Solutions, was sentenced to 18 months in federal prison for his role in a long-running bid-rigging scheme in North Carolina.

Bayer

Bayer to pay $40M to settle long-running false claims suits

2022-09-06T22:20:00+01:00By

Bayer agreed to pay $40 million to settle allegations its sales team paid kickbacks to hospitals and doctors for prescribing its drugs and that the pharmaceuticals company downplayed risks regarding certain of its offerings.

Wells Fargo

Wells Fargo ordered to pay ex-manager $22M in SOX whistleblower case

2022-09-02T14:56:00+01:00By

Wells Fargo must pay more than $22 million to a former senior banking executive who alleged to the Occupational Safety and Health Administration they were retaliated against for blowing the whistle on financial misconduct.

Whistle

SEC reverses Clayton-era whistleblower rule changes

2022-08-29T15:34:00+01:00By

The Securities and Exchange Commission amended its rules to provide further incentives to whistleblowers, particularly in cases involving large payouts or multiple federal agencies.

HSBC building

Lawsuit: HSBC Bank exec alleges discrimination, unauthorized WhatsApp use

2022-08-25T17:47:00+01:00By

Monique Thacker, a current HSBC Bank USA executive, claimed in a federal lawsuit she was discriminated and retaliated against for raising regulatory violations involving unauthorized communications by bank employees that were downplayed or ignored by management.

Essilor

Essilor agrees to $22M settlement over kickback charges

2022-08-24T19:06:00+01:00By

Essilor, a manufacturer and distributor of optical lenses and equipment, will pay $22 million to settle allegations it paid kickbacks to spur sales in violation of the False Claims Act.

Twitter HQ

Twitter whistleblower says poor cybersecurity invites breaches, manipulation

2022-08-23T22:13:00+01:00By

Peiter Zatko, a former cybersecurity executive at Twitter, has blown the whistle on his observations of systemic data security lapses at the company, undercounting of fake accounts, and how the social media platform could be manipulated by foreign intelligence services.

California AG

Calif. health system, healthcare providers to pay $70.7M over false claims

2022-08-22T21:59:00+01:00By

Gold Coast Health Plan and three California county healthcare service providers will pay a total of $70.7 million to settle allegations they violated the False Claims Act regarding California’s Medicaid program, Medi-Cal.

The Home Depot

DOJ-informed compliance guidance helps Home Depot prep for potential scrutiny

2022-08-10T12:00:00+01:00By

How can a company prove its compliance bona fides to a regulator, should one ever come knocking on its door? The Home Depot has prepared for such a scenario with detailed guidance pegged to the DOJ’s “Evaluation of Corporate Compliance Programs.”

/web/img/field/image/jpmorganhome.jpg

Judge: Ex-JPMorgan compliance exec’s retaliation claims credible for trial

2022-08-01T17:19:00+01:00By

A jury could conclude allegations made by a former JPMorgan Chase compliance executive who said she was fired for blowing the whistle have merit, a federal judge ruled.

Whistle

Court: RBS whistleblower should not receive award

2022-07-25T20:31:00+01:00By

A federal appeals court has denied the whistleblower claims of a former Royal Bank of Scotland employee seeking compensation for a tip he said generated more than $10 billion worth of settlements.

Biogen

Biogen discloses $900M agreement in whistleblower kickback suit

2022-07-21T15:52:00+01:00By

Massachusetts-based biotechnology firm Biogen reached a $900 million agreement in principle to resolve a False Claims Act lawsuit brought by a whistleblower alleging the payment of unlawful kickbacks to physicians.

Aerojet Rocketdyne

Aerojet Rocketdyne to pay $9M in cybersecurity whistleblower case

2022-07-11T19:38:00+01:00By

Aerojet Rocketdyne has agreed to pay $9 million to resolve allegations raised by a whistleblower that the aerospace and defense manufacturer misled the federal government regarding its compliance with cybersecurity requirements in certain contracts.

Brasseur_opinion

Historic EY fine latest by-product of KPMG cheating scandal

2022-06-29T13:44:00+01:00By

It is impossible to ignore the SEC’s $100 million fine against EY for employee exam cheating is double the amount the regulator penalized KPMG for its separate cheating scandal. Especially since the latter resolution appears to have served as a starting point for the SEC’s ruling on the former.

EY

EY fined record $100M for employee cheating scandal

2022-06-28T16:38:00+01:00By

Ernst & Young will pay $100 million after admitting to SEC charges addressing systematic cheating among its accounting professionals on CPA license exams over four years. The fine is the largest the agency has ever imposed against an audit firm.

SEC office

SEC spring rulemaking agenda signals potentially hectic fall for compliance

2022-06-23T22:08:00+01:00By

Final action by the Securities and Exchange Commission on its climate-related disclosure rule, whistleblower amendments, unimplemented elements of Dodd-Frank, and more could all take place by the end of the year, according to the agency’s spring agenda.

Brinks

Brinks fined $400K over restrictive whistleblower language in contracts

2022-06-22T19:48:00+01:00By

The Brink’s Company, a provider of security-related services, has agreed to pay $400,000 and add wording in U.S. confidentiality agreements to comply with an SEC rule regarding corporate whistleblowers.

Jaeger_opinion

USAA whistleblowers want to be heard—and now

2022-06-16T17:13:00+01:00By

Jaclyn Jaeger reflects on feedback received from former and current USAA employees following her three-part series detailing alleged violations of law and mismanaged compliance culture at the financial services giant.

Best Buy

Real talk: How Best Buy manages challenges of DEI goals

2022-06-02T11:45:00+01:00By

Two years into its diversity, equity, and inclusion action plan, Best Buy leaders attended Compliance Week’s National Conference to discuss—in a refreshingly blunt manner—the retailer’s learnings.

Brasseur_opinion

Ten highlights from Compliance Week 2022

2022-05-23T11:30:00+01:00By

Editor In Chief Kyle Brasseur recaps the moments that stood out to him most from Compliance Week’s first in-person event since 2019.

CW2022 John Carreyrou

Carreyrou lauds whistleblowers’ roles in helping expose Theranos fraud

2022-05-19T17:44:00+01:00By

John Carreyrou, whose reporting exposed blood-testing company Theranos as a fraud, discussed the vital role lab director Adam Rosendorff and his other colleagues that came forward played as sources during a fireside chat at Compliance Week’s National Conference.

USAA

Whistleblower to OCC: USAA had 400,000 undisclosed Military Lending Act violations

2022-05-06T15:00:00+01:00By

USAA Bank engaged in an estimated 400,000 violations of the Military Lending Act, a former director of compliance within the bank reported to the Office of the Comptroller of the Currency in documents seen by Compliance Week.

USAA building

A look inside USAA’s ‘catastrophically mismanaged’ compliance culture

2022-05-06T15:00:00+01:00By

In exclusive interviews with Compliance Week, former USAA insiders describe a risk and compliance culture in which numerous individuals either were given the axe or quit because the problems were so endemic.

USAA Bank

​Whistleblower: USAA ‘actively lying to regulators for years’ regarding violations of law

2022-05-06T15:00:00+01:00By

Senior executives at USAA ignored warnings from compliance staff and consultants for years regarding violations of U.S. federal banking laws and hid from regulators the scope of the company’s illegal practices, a former USAA director of compliance turned whistleblower told Compliance Week.

Whistle

NAVEX: Whistleblowers ‘more emboldened than ever’

2022-04-18T18:40:00+01:00By

NAVEX’s 2022 “Hotline & Incident Management Benchmark Report” provides chief compliance officers with valuable insight into how their hotline and incident management program stacks up against their peers.

Whistle

Former tech exec to pay $97K for impeding SEC whistleblower

2022-04-13T16:47:00+01:00By

David Hansen, co-founder of Las Vegas-based software company NS8, agreed to pay $97,523 to settle charges from the Securities and Exchange Commission that he impeded a whistleblower’s attempt to communicate with the agency about a securities law violation.

Mia Reini

CW National 2022 Q&A: Mia Reini on implementing DOJ guidance

2022-04-07T12:30:00+01:00By

Mia Reini, senior manager, corporate compliance and enterprise risk management at The Home Depot, previews her panel titled, “Proactive Response to DOJ Guidance—What to Expect from Regulators and The Home Depot Compliance Response” at CW’s National Conference in Washington, D.C. from May 16-18.

Whistle

New bill seeks shorter wait for SEC whistleblower awards

2022-04-01T16:42:00+01:00By

The “SEC Whistleblower Reform Act of 2022” proposes to shorten the wait time for a whistleblower to receive a payout by requiring the Securities and Exchange Commission to issue an initial ruling on a claim within one year of the deadline to file the claim.

DiMauro_opinion

Q1 roundup: SEC tackles climate disclosures, businesses navigate Russia restrictions, more

2022-04-01T12:00:00+01:00By

Regulation and guidance from U.S. agencies and the White House, plus compliance challenges stemming from a two-year global pandemic and Russia’s ongoing invasion of Ukraine, made the first quarter of 2022 a novel risk environment for regulated businesses.

Congress

PCAOB whistleblower program bill reintroduced to Congress

2022-03-29T16:23:00+01:00By

A bill that proposes to create a whistleblower program for the Public Company Accounting Oversight Board has been reintroduced to the House after failing to be acted upon by the Senate in 2019.

Pharmaceuticals

Mallinckrodt to pay $260M for False Claims Act violations

2022-03-08T19:23:00+00:00By

Pharmaceutical company Mallinckrodt agreed to pay approximately $260 million as part of a settlement announced by the Department of Justice for underpaying Medicaid rebates and violating kickback laws regarding its drug Acthar.

Andrew Russo

Six years later, CW whistleblower subject receives award

2022-03-08T16:31:00+00:00By

Andrew Russo, one of five whistleblowers to share their stories in CW’s “Witness to Wrongdoing” series, has finally received an award from the Securities and Exchange Commission, nearly six years after he filed his claim.

Whistleblower

SEC proposal seeks to undo Trump-era whistleblower changes

2022-02-10T23:44:00+00:00By

The Securities and Exchange Commission will seek to undo several changes to the agency’s whistleblower program enacted during the Trump administration to potentially limit large awards.

DOJ wall

False Claims Act-related settlements top $5.6B in 2021

2022-02-02T18:42:00+00:00By

False Claims Act settlements totaled more than $5.6 billion in the past federal fiscal year, the second-largest amount ever collected by the government in FCA actions in one year, according to the Department of Justice.

Supreme Court

Supreme Court declines case on False Claims Act anti-retaliation provisions

2022-01-27T19:11:00+00:00By

The Supreme Court has declined to settle conflict between two federal court decisions on whether former employees are covered by whistleblower anti-retaliation protections contained in the False Claims Act.

2022

NAVEX: Top 10 risk and compliance trends for 2022

2022-01-20T19:15:00+00:00By

Diversity, equity, and inclusion; prioritizing ESG; business continuity; and more highlight the latest edition of NAVEX’s annual list of risk and compliance trends worth monitoring.