With nearly 2/3 of companies in the U.S. impacted by fraud, it is important that a fraud whistle-blower program is enacted, a Harvard Law School blog post argues.
The point of an internal corporate fraud program is to identify issues internally rather than have whistleblowers “incentivized to turn to the Securities and Exchange Commission.” The SEC whistle-blower program provides monetary incentives for individuals, including employees, to come forward and report possible violations of the federal securities laws to the SEC.
Employee wrongdoings may trigger a government investigation or shareholder suit
“There is often a fine line between unethical and unlawful conduct in the current regulatory environment and the reporting of suspected wrongdoing by an employee (or the company) to regulators...
