Advocacy group holding panel event May 10 in Washington to examine SEC's use of internal compliance protocols as part of new Dodd-Frank whistleblower bounty program

WASHINGTON, May 9, 2011 /PRNewswire/ -- Voices for Corporate Responsibility – a national advocacy group for corporate integrity -- said that proposed federal legislation mandating internal reporting of business fraud would only further conceal the type of wrongdoing that has caused injury to shareholders, consumers, taxpayers and the government itself.

The group issued its statement ahead of a planned program on May 10 in Washington to examine whether the Securities & Exchange Commission should mandate use of internal corporate compliance protocols as a pre-requisite to participate in the new Dodd-Frank whistleblower bounty program. Under the proposed rules, whistleblowers who deliver original information to the SEC concerning a violation of federal securities laws and which lead to a successful enforcement action that results in fines exceeding $1 million will be eligible for a "bounty" award up to 30% of the sanctions. Such compensation includes matters brought against foreign securities issuers and also those involving the Foreign Corrupt Practices Act.

Responding to legislation proposed by Congressman Michael Grimm (R-NY), prominent whistleblower attorney Reuben Guttman, a director at Grant & Eisenhofer a co-founder of Voices, said, "The financial crisis, which cost thousands of Americans their jobs and destroyed significant value for many U.S. companies, was a case study in failed corporate compliance programs. Those individuals on the front line to witness and corroborate wrongdoing are in a unique position to report to government regulators before such behavior leads to devastating harm – and they should be given every available opportunity to do so without fear of reprisal or disincentive."

Noting the built-in guidelines already in place under the new Dodd-Frank rules, Mr. Guttman added, "This is not about sanctioning the right to report inside information to the public or the media, it's about protecting the right to report directly to government regulators who will judiciously use the information to protect the public good. Regulators need to know when management or other employees are breaking the law and they need to know it in a timely fashion to prevent further harm."

Voices is sponsoring two one-hour panel discussions on May 10 at the Fairmont Hotel in Washington, DC (beginning at 9 AM) to focus on the SEC/Dodd-Frank whistleblower program. The SEC has announced it will issue its final rules by July. The first panel will address whether internal compliance should be mandated as a condition of securing bounty rewards for whistleblowers. The second panel will pose the question, "Can the SEC Handle the Whistleblower Law?" Panelists include high-level representatives from both sides off the debate, as well as the SEC and academic community.

"These are critical issues and they should be debated in open forum," said attorney Cyrus Mehri of Mehri & Skalat and a co-founder of Voices. "Congress passed Dodd-Frank empowering the SEC to engage in notice and comment rulemaking. It is stunning that at least one lawmaker is already plotting an end run around rules that have yet to be promulgated."

For a full description of the May 10 program and panelists, go to www.v4cr.org. To register, click here.

Note: Washington, DC-based Voices for Corporate Responsibility is a non-profit advocacy group established in 2010, to assist corporate employees in holding officers and directors to high standards of integrity. The organization urges employees to participate in regulatory and legislative reform that protects their right to address conduct that adversely impacts the corporation, shareholders and consumers. Voices also encourages employees to recognize wrongdoing and to take action. For more information, call (866) 464-9097.

Contacts: Allan Ripp, for Voices 212-262-7477 arippnyc@aol.com
Ivan Alexander 212-262-7482 ivan.k.alexander@gmail.com

SOURCE Voices for Corporate Responsibility