Partner Jeffrey Alberts Quoted on Whistleblower Award Program
Partner Jeffrey Alberts, head of Pryor Cashman's White Collar Defense and Investigations practice, was quoted in the Compliance Week article "When Compliance and Audit Executives Blow the Whistle."
The article discusses the SEC’s new whistleblower award program through which the first whistleblower award of $300,000 was given to an audit/compliance employee. Anyone with original information on corporate misdeeds can go directly to the SEC instead of reporting matters internally first, and becomes eligible for a whistleblower award. The rule, however, is different for compliance and internal audit employees. If someone in this capacity reports a matter internally, but sees no action by the company in 120 days, they are eligible to become a whistleblower.
According to Alberts, the SEC is sending a message with its latest award. "They want to make sure compliance professionals understand that this opportunity is available to them," he says. "They are potentially the most valuable whistleblowers. Second, the SEC wants to let companies know they need to act swiftly to complaints that are made. Companies need to focus more aggressively on this 120-day time line."
To read the entire article, please click here.
