Employer Scare Tactics May Chill SEC Whistleblower Program

Law360, New York (May 10, 2013, 7:56 PM EDT) -- The U.S. Securities and Exchange Commission’s new whistleblower office is off to an auspicious start, but attorneys say the program could suffer if the agency fails to punish firms that silence tipsters through unfair employment agreements.

The whistleblower program, which went into effect in August 2011, received more than 3,000 tips about alleged wrongdoing in the 2012 fiscal year alone. While the SEC has issued only one whistleblower award so far, officials insist the program is strengthening anti-fraud enforcement and putting a scare into corporate bad...
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