SEC To Corporations: Get Out Of The Way!
In a recent interview with the American Lawyer, Sean McKessey, the SEC’s Office of the Whistleblower chief, warned companies and lawyers to not try to impede or intimidate potential whistleblowers from making tips to the SEC. Specifically, Mr. McKessey warned that attorneys should not seek to draft policies and agreements which would prevent a company’s employee from reporting alleged fraud to the SEC. Mr. McKessey plainly stated: If you’re dissuading or prohibiting individuals from reporting to us, you’re violating the rules.”
The SEC received over 3,000 whistleblower tips and awarded its first whistleblower award during the 2012 fiscal year, the first year of the program.
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