When the Whistle Blows
Partner Jeffrey Alberts, head of the White Collar Crime and Investigations practice, and Associate Eric Dowell have authored an article for PE Manager entitled, “When the Whistle Blows.”
Private equity firms have grown increasingly alarmed by the rising specter of whistleblowers. The number of whistleblower cases has increased at an exponential rate since the SEC instituted the whistleblower program in the wake of Dodd-Frank’s passage, and the SEC has made clear that it will rely on whistleblowers with increasing frequency going forward. At the same time, the SEC has stated that investment advisors and the funds they manage continue to be a focus for enforcement actions. Finally, the recent escalation in SEC penalties creates an ever-growing incentive for employees at private equity firms to report information to the SEC in the hopes of obtaining a bounty. These bounties, which can be up to 30 percent of the penalty amount, can be substantial.
To view the full text of the article, click here.
