Whistleblower Update: Keys to Corporate Compliance, Limiting Risk, and Stopping Fraud

Whistleblower Update Webinar Recording

Employers who violate SEC regulations face the Dodd-Frank Act's newly enacted Rule 21F. It gives employees a greater incentive to blow the whistle, resulting in a minimum reward of up to $300,000 based on monetary sanctions imposed for the violation.

But what if your organization hasn't done anything wrong and an employee still contacts authorities? HR's reaction to this common event can prove to be a major problem for organizations of all sizes.

Although the final rule has only been in affect since August, there are already some scary numbers for employers:

• The SEC filed a total of 735 enforcement actions in 2011, a single-year record.
• The Investor Protection Fund is set to pay out $450 million in whistleblower bounties in the coming months to demonstrate the program's value
• On average, under the new Rule 21F, the whistleblower bounty is $60 million

With such monetary incentives now in play, employees may feel compelled to report any conduct they think violates federal regulations -- whether it does or not. Dodd-Frank opens the door for more claims, and regardless of the validity, the additional scrutiny by the DOL and EEOC will cost you time and money.

This latest reform also contains additional whistleblower protection, anti-retaliation, and federal contractor/diversity provisions, including:

• The law explicitly prohibits retaliating against whistleblowers who provide information to the SEC or make disclosures protected under various laws within the agency’s jurisdiction.
• In contrast to other whistleblower laws, Dodd-Frank allows employees to file a complaint in federal court immediately without first exhausting administrative remedies.
• In addition, the statute of limitations for filing a claim are extremely generous; Dodd- Frank gives employees six years after the date on which the violation occurred or not more than three years after the date on which he should have known the material facts related to retaliation to file a claim.
• Retaliatory relief under Dodd-Frank also includes two times the amount of back pay owed to the individual (with interest) and compensation for litigation costs, expert witness fees, and reasonable attorneys’ fees.
• Federal contractors, subcontractors, and service providers could face more regulatory review of their current diversity programs and practices, especially for minority- and women-owned businesses.

This is a game-changer for organizations, so it's important to not only understand whistleblowing risks but also how to develop a plan to identify and manage the problem to protect your organization.

Participate in this interactive webinar, and you'll learn:

• How you should respond to the threat of whistleblowers
• The results of actual whistleblower cases and what they mean for your organization
• Tips for developing customized training that is unique to your organization
• Proactive steps you must take to detect and prevent fraud
• What changes have been made to the Sarbanes-Oxley’s whistleblower retaliation provisions

In just 90 minutes, you'll have a deeper understanding of whistleblowing risk factors so you can identify and manage the problem before it spirals out of control. Register now for this informative event risk-free.

This webinar was recorded on Thursday, January 26, 2012

Whistleblower Update: Keys to Corporate Compliance, Limiting Risk, and Stopping Fraud

About Your Speaker:

Ahmad Abdul-Qadir, CPA, MBA, is the managing director of Continewity LLC, which provides innovative solutions in corporate governance, productivity, and strategy to progressive organizations committed to outpacing the competition. With more than 15 years of experience as a risk management, financial, and operations leader, Mr. Abdul-Qadir has planned and executed dozens of engagements in more than 20 countries that have generated valuable insights for firms within various industries.

Mr. Abdul-Qadir specializes in developing advanced analytical tools for organizations that highlight business, economic, and demographic trends impacting the future demands for goods/services, supplier, and competitor trends. He also assists organizations to establish effective governance systems by efficiently utilizing human and technology resources, guiding policy creation, and benchmarking relevant performance metrics. In addition, he has worked with Fortune 100, 500, and Global 1000 firms, as well as Big Four public accounting firms and Big Three management consulting firms, gaining close knowledge of their varying methodologies.