Via Peter Henning @ Dealbook.
Oscar Wilde once wrote: “To expect the unexpected shows a thoroughly modern intellect.”
Cases often emerge with no prior warning, although in hindsight it can be easy to see how they came to fruition. The S.E.C.’s new whistleblower program may start to bear fruit in 2011, generating investigative leads and cases that might not otherwise have come to light when they did.
One of the most potent areas in which corporate whistleblowers can assist the government is overseas payments in violation of the Foreign Corrupt Practices Act. There has already been an upsurge in corrupt practices investigations and prosecutions over the past five years, enough to cause companies to complain to Congress about the scope of the statute.
It is hard to be in favor of bribery wherever it takes place. So while efforts to rein in enforcement of the act may have some impact around the edges, I would be surprised if we see any significant revision in the statute. And, once the tips to the S.E.C. start bearing fruit in enforcement actions, it will be hard to cut back on the whistleblower program that promises those who provide valuable information with at least 10 percent of any recovery by the government over $1 million.
No comments:
Post a Comment