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: False Claims Act - Qui Tam

SEC resists attempts to weaken new whistleblower program

By Phillips & Cohen LLP

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The final rules for the Securities and Exchange Commission's whistleblower reward program contain provisions that will protect and encourage those who report fraud.

Erika Kelton of Phillips and Cohen told the New York Times that employees almost always report their concerns about misconduct and fraud to managers and supervisors first. "It has only been after they have been retaliated against for doing so that they have come to us.?

Ms. Kelton noted that the SEC resisted intense pressure from corporate interest groups to weaken the rules. "By establishing incentives for people to report fraud concerns internally before going to the SEC -- but not making such reporting mandatory -- the SEC has struck a balance that still will encourage whistleblowers."

Full post as published by False Claims Act - Qui Tam on May 26, 2011 (boomark / email).

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