Whistleblowers: Incentives, Disincentives, and Protection Strategies

Whistleblowers: Incentives, Disincentives, and Protection Strategies

Volumn , Issue , 2012, Pages

  Lipman, Frederick D ^a  

^a Blank Rome LLP ^*  (United States)

Author keywords

[No Author keywords available]

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EID: 84891583628     PISSN: None     EISSN: None     Source Type: Book    
DOI: 10.1002/9781118386545     Document Type: Book

References (242)

1. Anthony Heyes and Sandeep Kapur, "An Economic Model of Whistle-Blower Policy," Journal of Law, Economics, & Organization 25, no. 1; doi:10,1093/jeo/ewim049, advance access publication January 3, 2008;
2. Robert Howse and Ronald J. Daniels, "Rewarding Whistleblowers: The Costs and Benefits of an Incentive-Based Compliance Strategy," University of Pennsylvania, Scholarly Commons, Departmental Papers (School of Law), January 1, 1995.
3. Andrea Redmond and Patricia Crisafulli, Comebacks: Powerful Lessons from Leaders Who Endured Setbacks and Recaptured Success on Their Terms (San Francisco: Jossey-Bass, 2010).
4. See also Benson Smith and Tony Rutigliano, "Enron and You-A Lesson for Sales Execs: You Don't Have the Luxury of Invoking the Fifth," Gallup Management Journal, February 25, 2011. http://gmj.gallup.com.
5. See "Report of Anton R. Valukas, Examiner," March 11, 2010, pp. 1460-1465.
6. Association of Certified Fraud Examiners, 2010 Global Fraud Study, "Report to the Nations on Occupational Fraud and Abuse." http://www.acfe.com/rttn/rttn-2010.pdf.
7. The use of an organizational ombudsman was suggested by Francis J. Milliken, Elizabeth W. Morrison, and Patricia F. Hewlin in "An Exploratory Study of Employee Silence: Issues that Employees Don't Communicate Upward and Why," November 4, 2003. http://w4.stern.nyu.edu/emplibrary/Milliken.Frances.pdf.
8. Bill Berkrot, "Pfizer Whistleblower's Ordeal Reaps Big Rewards," Reuters, September 2, 2009.
9. Conversation with Patrick Burns, Director of Communications, Taxpayers Against Fraud Education Fund, based on a review of whistleblower claims on the website: www.taf.org/abouttaf.htm.
10. SEC Litigation Release No. 21540, May 28, 2010.
11. D. Malan, "Messy Divorce Leads to Whistleblower Bounty in Pequot Capital Case," Law.com, August 12, 2010. www.law.com/jsp/law/LawArticleFriendly.jsp?id=1202464787161.
12. S. Dugner, "Would a Fraud Bounty Have Exposed Madoff Years Ago?" Freakonomics, February 26, 2009. www.freakonomics.com/2009/02/26/would-a-fraud-bounty-have-exposed-madoff-years-ago.
13. K. Frieswick, "Madoff Whistle-Blower Offers His Account," Boston Globe, March 2, 2010. See also H. Markopolos, No One Would Listen (Hoboken, NJ: John Wiley & Sons, 2010).
14. Limited to the extent deposited into a disgorgement fund or other fund pursuant to Section 308(b) of the Sarbanes-Oxley Act of 2002. See SEC Rule 21F- 4(e).
15. Assessment of the SEC's Bounty Program, Report No. 474, March 29, 2010. www.sec-oig.gov/Reports/AuditsInspections/2010/474.pdf.
16. www.sec.gov/comments/s7-33-10/s73310-166.pdf. See Chapter 11 for more detailed information.
17. Section 30A of 1934 Act.
18. Securities Exchange Act of 1934 Release No. 51724, May 20, 2005.
19. SEC v. Lucent Technologies, Inc., Civil Action No. 07-092301 (D.D.C. Filed December 21, 2007).
20. Frederick Lipman, International and U.S. IPO Planning: A Business Strategy Guide (Hoboken, NJ: John Wiley & Sons, 2009), pp. 90-91.
21. www.sec.gov/answers/ponzi.htm.
22. www.sec.gov/answers/insider.htm.
23. Section 13(b)(2) of 1934 Act.
24. "SEC Charges State of New Jersey for Fraudulent Municipal Bond Offerings," SEC Press Release 2010-152, August 18, 2010. www.sec.gov/news/press/2010/2010-152.htm.
25. Section 748 of Dodd-Frank.
26. Daniel Schorn, "Glaxo Whistle-Blower Lawsuit: Bad Medicine," CBS News, January 7, 2011.
27. www.cbsnews.com/stories/2010/12/20/60minutes/main7195247.shtml.
28. See http://www.necn.com/pages/landing?blockID=339520.
29. See http://www.guardian.co.uk/business/2010/oct/28/glaxosmithkline-executives-allegedly-ignored-eckard.
30. www.taf.org/eckardcomplaint3.pdf.
31. See http://pharmagossip.blogspot.com/2010/10/gsk-cheryl-eckard-tried-to-warn-ceo-but.html.
32. www.taf.org/eckardcomplaint3.pdf.
33. www.taf.org/eckardcomplaint3.pdf.
34. http://freepdfhosting.com/da79d56653.pdf.
35. Peter Howe, "Whistleblower Wins 96 Million in GlaxoSmithKline Case," NECH.com, October 26, 2010. http://www.necn.com/10/26/10/Whistleblower-wins-96-million-in-GlaxoSm/landing_business.html?blockID=339520&feedID=4209.
36. Francis J. Milliken, Elizabeth W. Morrison, and Patricia F. Hewlin, "An Exploratory Study of Employee Silence: Issues that Employees Don't Communicate Upward and Why," November 4, 2003. http://w4.stern.nyu.edu/emplibrary/Milliken.Frances.pdf.
37. See http://pharmagossip.blogspot.com/2010/10/gsk-cheryl-eckard-tried-to-warn-ceo-but.html.
38. Peter Loftus, "Glaxo Pulls Some Ads, Citing Image," Wall Street Journal, January 25, 2011, p. D4.
39. This discussion of Kopchinski is based on Bill Berkrot, "Pfizer Whistleblower's Ordeal Reaps Big Rewards," Reuters, September 2, 2009.
40. Third Amended Complaint, entitled United States of America Ex Rel. John Kopchinski, Relators, v. Pfizer, Inc. and Pharmacia Corp., Defendants, filed in the United States District Court for the District of Massachusetts, C.A. No. 05-CV- 12115-RCL, and on file in the author's office.
41. Danny Westneat, "Nobody Likes a Snitch . . . Do They?" Seattle Times, July 20, 2008.
42. David M. Becker, Esq., General Counsel, Speech by SEC Staff, Remarks at the Practising Law Institute's Ninth Annual Institute on Securities Regulation in Europe, U.S. Securities and Exchange Commission, January 25, 2011.
43. Conversation with Patrick Burns, Director of Communications, Taxpayers Against Fraud, based on a review of whistleblower claims on the website: www.taf.org/abouttaf.htm.
44. Maarten De Schepper, "Setting the Right Incentives for Whistleblowers," August 10, 2009, paper submitted for European Master in Law and Economics, 2008-2009. www.emle.org/_data/Marten_De_Schepper_-_Setting_the_Right_Incentives_for_Whistleblowers.pdf.
45. John Hechinger and James Bandler, "Former Xerox Officials in Mexico Assert Headquarters Ignored Fiscal Warnings," Wall Street Journal, February 9, 2001.
46. Alexander Dyck, Adair Morse, and Luigi Zingales, "Who Blows the Whistle on Corporate Fraud?" Journal of Finance 65, no. 6 (2010): 2213-2253. http://dx.doi.org/10.1111/j.1540-6261.2010.01614.x.
47. Kipling D. Williams, Ostracism: The Power of Silence (New York: Guilford Press, 2002), pp. 191-196.
48. De Schepper, "Setting the Right Incentives for Whistleblowers."
49. Geoffrey Christopher Rapp, "Beyond Protection: Invigorating Incentives for Sarbanes-Oxley Corporate and Securities Fraud Whistleblowers," Boston University Law Review 87, no. 91 (2007): 91-156.
50. William James, Principles of Psychology (New York: Dover Publications, 1950), p. 293. (Originally published 1890.)
51. Sonja L. Faulkner, "After the Whistle Is Blown: The Aversive Impact of Ostracism," PhD diss., August 1998, University of Toledo.
52. See Marcia P. Miceli and Janet P. Near, "Blowing the Whistle: The Organizational and Legal Implications for Companies and Employees" (New York: Lexington Books, 1992), p. 49.
53. Faulkner, "After the Whistle Is Blown."
54. C. Fred Alford, Whistleblowers: Broken Lives and Organizational Power (Ithaca, NY: Cornell University Press, 2002), p. 32.
55. Robert Howse and Ronald J. Daniels, "Rewarding Whistleblowers: The Costs and Benefits of an Incentive-Based Compliance Strategy," University of Pennsylvania Scholarly Commons, Department Papers (School of Law), January 1, 1995, p. 533. http://works.bepress.com/cgi/viewcontent.cgi?article=1017&context=ronald_daniels.
56. Dyck, Morse, and Zingales, "Who Blows the Whistle on Corporate Fraud?" p. 24.
57. Pamela H. Bucy, "Private Justice," Southern California Law Review 75, No. 1 (2002): 61-62;
58. see also De Schepper, "Setting the Right Incentives for Whistleblowers."
59. Alford, Whistleblowers: Broken Lives and Organizational Power (Ithaca, NY: Cornell University Press, 2002), pp. 31-32.
60. Becker, Speech by SEC Staff.
61. Vincent Keter and Louise Smith, "Whistleblowing: The Public Interest Disclosure Act of 1998." House of Commons Standard Note SN/BT/248, August 14, 1999.
62. See Terry Morehead Dworkin and Elletta Sangrey Callahan, "Buying Silence," American Business Law Journal 36 (1998): 151, 152.
63. See Leonard M. Baynes, "Just Pucker and Blow?: An Analysis of Corporate Whistleblowers, the Duty of Care, the Duty of Loyalty, and the Sarbanes-Oxley Act," St. John's Law Review 76 (2002): 884, 893.
64. Ethics Resource Center, Supplemental Research Brief, "2009 National Business Ethics Survey: Retaliation: The Cost to Your Company and Its Employees," 2010.
65. Michael T. Rehg, Marcia P. Miceli, Janet P. Near, and James R. Van Scotter, "Antecedents and Outcomes of Retaliation Against Whistleblowers: Gender Differences and Power Relationships," Organization Science 19, No. 2 (March- April 2008): 221-240. Copyright 2008, the Institute for Operations Research and the Management Sciences (INFORMS), 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA.
66. www.ethics.org/files/u5/Retaliation.pdf.
67. De Schepper, "Setting the Right Incentives for Whistleblowers."
68. Rehg et al., "Antecedents and Outcomes of Retaliation Against Whistleblowers."
69. Brent R. MacNab and Reginald Worthley, "Self-Efficacy as an Intrapersonal Predictor for Internal Whistleblowing: A US and Canada Examination," Journal of Business Ethics 79 (2008): 407-421.
70. "Sherron Watkins eMail to Enron Chairman Kenneth Lay," January 20, 2002. www.itmweb.com/f012002.htm.
71. Richard E. Moberly, "Sarbanes-Oxley's Structural Model to Encourage Corporate Whistleblowers," Brigham Young University Law Review 1108, no. 5 (2006): 1123.
72. Susan Pulliam and Deborah Solomon, "Uncooking the Books: How Three Unlikely Sleuths Discovered Fraud at WorldCom," Wall Street Journal, October 30, 2002.
73. www.howtheworldchanged.org/speakers.html#.
74. www.coleenrowley.com/pages/about_coleen.php.
75. M. P. Miceli and J. P. Near, Blowing the Whistle: The Organizational and Legal Implications for Companies and Employees. (New York: Lexington Books, 1992).
76. J. P. Near and M. P. Miceli, "Retaliation against Whistleblowers: Predictors and Effects," Journal of Applied Psychology 71 (1986): 137-145.
77. Michael T. Rehg, Marcia P. Miceli, Janet P. Near, and James R. Van Scotter, "Antecedents and Outcomes of Retaliation Against Whistleblowers: Gender Differences and Power Relationships," Organization Science 19, no. 2 (March- April 2008): 221-240.
78. L. M. Cortina, K. A. Lonsway, V. J. Magley, L. V. Freeman, L. L. Collinsworth, M. Hunter, and L. F. Fitzgerald, "What's gender got to do with it? Incivility in the federal courts," Law & Social Inquiry 272 (2002): 235-270.
79. Rehg et al., "Antecedents and Outcomes of Retaliation Against Whistleblowers," p. 235.
80. D. P. Skarlicki and R. Folger, "Retaliation in the Workplace: The Roles of Distributive, Procedural and Interactional Justice," Journal of Applied Psychology 83 (1997): 434-443.
81. Phillip G. Clampitt, Communicating for Managerial Effectiveness: Problems, Strategies, Solutions (Thousand Oaks, CA: Sage Publications, 2004), p. 75.
82. A. Morse, A. Dyck, and L. Zingales, Who Blows the Whistle on Corporate Fraud? (Cambridge, MA: National Bureau of Economic Research, 2007);
83. S. Ayers and S. Kaplan, "Wrongdoing by Consultants: An Examination of Employees' Reporting Intentions," Journal of Business Ethics 57 (2005): 121-37;
84. J. Near and M. Miceli, "Whistle-Blowing: Myth and Reality," Journal of Management 22 (1996): 507-527;
85. J. Near and M. Miceli, "Effective Whistle-Blowing," Academy of Management Review (1995): 679-708.
86. United States v. Park, 421 U.S. 658 (1975).
87. For example, see "Hogan Lovells' Peter Spivack on the Rise of the Park Doctrine," Corporate Crime Reporter, November 2, 2010. www.corporatecrimereporter.com/spivack110210.htm.
88. Alicia Mundy, "U.S. Effort to Remove Drug CEO Jolts Firms," Wall Street Journal, April 26, 2011, p. 1.
89. Section 2.7 of "Corporate Governance Policies" of Council of Institutional Investors. www.cii.org/UserFiles/file/council%20policies/CII%20Corp%20Gov%20Policies%20Full%20and%20Current%204-13-10.pdf.
90. Melissa S. Baucus and David A. Baucus, "Paying the Piper: An Empirical Examination of Longer-Term Financial Consequences of Illegal Corporate Behavior," Academy of Management Journal 40, no. 1 (February 1997): 129-151.
91. D. Murphy, R. Shrieves, and S. Tibbs, "Determinants of the Stock Price Reaction to Allegations of Corporate Misconduct: Earnings, Risk, and Firm Size Effects," http://bus.utk.edu/corp_gov/Research/DetShrMurTib.pdf;
92. Alan K. Reichert, Michael Lockett, and Ramesh P. Rao, "The Impact of Illegal Business Practice on Shareholder Returns," Financial Review 1 (1996): 67-85.
93. Barry Ritholz, "Indictment to Settlement: $15 Billion Market Cap Loss," the Big Picture, July 17, 2010. www.ritholtz.com/blog/2010/07/indictment-to-settlement-15-billion-market-cap-loss.
94. Benson Smith and Tony Rutigliano, "Enron and You-A Lesson for Sales Execs: You Don't Have the Luxury of Invoking the Fifth," Gallup Management Journal, February 25, 2002. http://gmj.gallup.com/content/313/enron.aspx.
95. Bethany McLean and Peter Elkind, The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron (New York: Penguin, 2004).
96. See also Andrea Redmond and Patricia Crisafulli, Comebacks: Powerful Lessons from Leaders Who Endured Setbacks and Recaptured Success on Their Terms (San Francisco: Jossey- Bass, 2010), p. 104.
97. Permanent Subcommittee of Investigations of the Committee on Governmental Affairs United States Senate, "The Role of The Board of Directors in Enron's Collapse," July 8, 2002, p. 6. http://fl1.findlaw.com/news.findlaw.com/cnn/docs/enron/senpsi70802rpt.pdf.
98. Gary Strauss, "Tyco Events Put Spotlight on Directors' Role," USA Today, September 15, 2002.
99. Bethany McLean and Joe Nocera, All the Devils Are Here: The Hidden History of the Financial Crisis (New York: Portfolio/Penguin, 2010), pp. 166, 308.
100. Peter Evans, "Merrill's $3.4 Billion Balance Sheet Bomb," CNNMoney.com, October 24, 2007. http://money.cnn.com/2007/10/24/news/companies/merrill_eavis.fortune/index.htm.
101. "Report of Anton R. Valukas, Examiner," March 11, 2010, p. 21. http://lehmanreport.jenner.com.
102. Redmond and Crisafulli, Comebacks, p. 102.
103. Copeland, "Lotus CEO Resigns," Computerworld, January 10, 2000. www.computerworld.com/s/article/40601/Lotus_CEO_Resigns.
104. Olean, "Resume Fraud in the Corner Office," Smeal College of Business, Penn State College of Business (November 2002). http://news.smeal.psu.edu/news-release-archives/2002/nov02/resume.html;
105. see also Gross, "Schools Lie: Why Do So Many Executives Lie about Their Education?" Slate, October 22, 2002. www.slate.com/id/2072961.
106. McLean and Nocera, All the Devils Are Here, p. 190.
107. Michael Lewis, The Great Hangover: 21 Tales of the New Recession from the Pages of Vanity Fair (New York: Harper Perennial, 2010;
108. see also the Financial Crisis Report Commission, "The Financial Crisis Inquiry Report" (January 2011): 200-201. www.gpoaccess.gov/fcic/fcic.pdf.
109. Moe Tkacik, "That AIG Story, for Readers Who Are Sick of AIG Already," July 6, 2009. http://trueslant.com/moetkacik/2009/07/06/.
110. Lewis, The Great Hangover.
111. Financial Crisis Report Commission, "The Financial Crisis Inquiry Report," pp. 200-201;
112. Andrew Simpson, "Greenberg: AIG's Risky Subprime Activity 'Exploded' after He Left," Insurance Journal, Oct. 10, 2008. www.insurancejournal.com/news/national/2008/10/10/94544.
113. McLean and Elkind, The Smartest Guys in the Room, pp. 166, 308.
114. Financial Crisis Report Commission, "The Financial Crisis Inquiry Report," p. 238.
115. Redmond and Crisafulli, Comebacks, p. 104.
116. "Second Interim Report of Dick Thornburgh, Bankruptcy Court Examiner" (Bankr. SDNY June 9, 2003), In re WorldCom, Inc., et al, Chapter 11 Case No. 02-15533 (AJG), Jointly Administered.
117. PCAOB Investor Advisory Group, "Report from the Working Group on: Lessons Learned from the Financial Crisis," March 16, 2011. http://pcaobus.org/News/Events/Documents/03162011_IAGMeeting/The_Watchdog_That_Didnt_Bark.pdf.
118. AU Section 317.06 http://pcaobus.org/Standards/Auditing/Pages/AU317.aspx.
119. "Second Interim Report of Dick Thornburgh."
120. "Title 8: Corporations." State of Delaware. http://delcode.delaware.gov/title8/c001/sc01/index.shtml.
121. Caremark International, Inc. Derivative Litigation, 1996 WL 549894 [Del. Ch.].
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125. United States v. Lauren Stevens, Case No. 10CR694-RWT(D. Md.), November 9, 2010. The indictment was dismissed on May 10, 2011.
126. United States v. Basic Construction Co., 711 F.2d 570 (4th Cir. 1983).
127. 463 F.3d 9, 25 (1st Cir. 2006).
128. 770 F.2d 399 (4th Cir. 1985).
129. See United States v. Cincotta, 689 F.2d 238, 241-42 (1st Cir. 1982).
130. See United States v. Automated Medical Laboratories, 770 F.2d 399 (4th Cir. 1985); 770 F.2d at 407 (emphasis added; quoting Old Monastery Co. v. United States, 147 F. 2d 905, 908 (4th Cir.) cert. denied, 326 U.S. 734 (1945)).
131. United States v. Dotterweich, 320 U.S. 277 (1943).
132. See Commissioner, Indiana Department of Environmental Management v. RLG, Inc., 755 N.E.2d 556, 560 (Ind. 2001), citing Matter of Dougherty, 482 N.W.2d 485, 489 (Minn. Ct. App. 1992).
133. State v. Arkell, 657 N. W.2e 883 (Minn. Ct. App. 2003).
134. U.S. v. Park, 421 U.S. 658 (1975).
135. "Principles of Federal Prosecution of Business Organizations," Memorandum from Mark R. Filip, Deputy Attorney General, to Heads of Department Components and United States Attorneys, August 28, 2008. www.justice.gov/opa/documents/corp-charging-guidelines.pdf.
136. In re: Caremark, 698 A.2d 959 (Del. Ct. Chan. 1996).
137. "Principles of Federal Prosecution of Business Organizations."
138. U.S. Sentencing Guidelines Manual Section 8C2.5(f)(3)(C) (2010); U.S. Sentencing Guidelines Manual Section 8C2.5, cmt. n.11 (2010).
139. 2010 Corporate Governance and Compliance Hotline Benchmark Report, "A Comprehensive Examination of Organizational Hotline Activity from the Network." http://tnwinc.com/files/2011TNWbenchmarkingreport.pdf?webSyncID=24de8b7c-92b9-3074-a566-921c84284727&sessionGUID=bcd27041-3405-c274-b7bd-071a4be99052.
140. Deloitte Forensic Center, "Whistleblowing and the New Race to Report: The Impact of the Dodd-Frank Act and 2010's Changes to U.S. Federal Sentencing Guidelines," 2010. www.deloitte.com/view/en_US/us/Services/Financial-Advisory-Services/Forensic-Center/fb02b4b17deaa210VgnVCM2000001b56f00aRCRD.htm.
141. Marcia P. Miceli and Janet P. Near, "What Makes Whistleblowers Effective? Three Field Studies," Human Relations 55, No. 4 (2002): 455-479.
142. Public Company Accounting Oversight Board Standard No. 5. http://pcaobus.org/Standards/Auditing/Pages/Auditing_Standard_5.aspx.
143. David M. Becker, Esq., General Counsel, "Speech by SEC Staff: Remarks at the Practicing Law Institute's Ninth Annual Institute on Securities Regulation in Europe," U.S. Securities and Exchange Commission, January 25, 2011.
144. James E. Hunton and Jacob M. Rose, "Effects of Anonymous Whistle-Blowing and Perceived Reputation Threats on Investigations of Whistle-Blowing Allegations by Audit Committee Members," Journal of Management Studies 1, no. 48 (2011): 75-98.
145. Deloitte Forensic Center, "Whistleblowing and the New Race to Report: The Impact of the Dodd-Frank Act and 2010's Changes to U.S. Federal Sentencing Guidelines," 2010. www.deloitte.com/view/en_US/us/Services/Financial-Advisory-Services/Forensic-Center/fb02b4b17deaa210VgnVCM2000001b56f00aRCRD.htm.
146. Alexander Dyck, Adair Morse, and Luigi Zingales, "Who Blows the Whistle on Corporate Fraud?" Compliance Building.com, April 29, 2010. www.compliancebuilding.com/2010/04/29/who-blows-the-whistle-on-corporate-fraud.
147. Mary B. Curtis, "Whistleblower Mechanisms: A Study of the Perceptions of 'Users' and 'Responders,'" Dallas chapter of the Institute of Internal Auditors, April 2006.
148. Section 10A of the Securities Exchange Act of 1934.
149. Sebastian Moffett, "Renault's No. 2 Executive Quits," Wall Street Journal, April 12, 2011.
150. James E. Hunton and Jacob M. Rose, "Do Audit Committee Members' Self- Interests Influence Accounting Choice?" Accounting, Organizations and Society 33 (2008): 783-800;
151. E. Fama and M. Jenson, "Separation of Ownership and Control," Journal of Law and Economics 26 (1983): 301-325.
152. Bethany McLean and Joe Nocera, All The Devils Are Here: The Hidden History of the Financial Crisis (New York: Portfolio/Penguin 2010).
153. "Hewlett-Packard CEO Mark Hurd Resigns after Sex Harassment Investigation," Telegraph, August 7, 2010. www.telegraph.co.uk/news/worldnews/northamerica/usa/7932100/Hewlett-Packard-CEO-Mark-Hurd-resigns-after-sex-harassment-investigation.html.
154. J. Greenberg, "Reactions to Procedural Justice in Payment Distributions: Do the Ends Justify the Means?" Journal of Applied Psychology 72 (1987): 55-71.
155. "Sherron Watkins eMail to Enron Chairman Kenneth Lay," January 20, 2002. www.itmweb.com/f012002.htm.
156. Dan Ackman, "Sherron Watkins Had Whistle, But Blew It," Forbes, February 14, 2002. www.forbes.com/2002/02/14/0214watkins.html.
157. Ashby Jones and Joann S. Lublin, "Firms Revisit Whistleblowing," Wall Street Journal, March 14, 2011;
158. see also Gerard Bon, "Renault Security Manager under Fraud Investigation," Reuters, March 13, 2011.
159. Sebastian Moffett, "Renault's No. 2 Executive Quits," Wall Street Journal, April 12, 2011.
160. Thomas R. Fox, "Ready, Fire, Aim: L'Affaire Renault," FCPA Compliance and Ethics Blog, March 15, 2011. http://tfoxlaw.wordpress.com/2011/03/15/ready-fire-aim.
161. Hunton and Rose, "Effects of Anonymous Whistle-Blowing."
162. Harry Markopolos with Frank Casey, Neil Chelo, Gaytri Kachroo, and Michael Ocrant, No One Would Listen: A True Financial Thriller (Hoboken, NJ: John Wiley & Sons, 2010), p. 171.
163. Michael J. Gundlach et al., "The Decision to Blow the Whistle: A Social Information Process Framework," Academy of Management Review 28, No. 1 (January 2003): 107-123.
164. Marcia P. Miceli and Janet P. Near, "The Incident of Wrongdoing, Whistle-Blowing, and Retaliation: Results of a Naturally Occurring Field Experiment," Employee Responsibilities and Rights Journal 2, No. 2 (1989).
165. Janet P. Near and Tamila C. Jensen, "The Whistleblowing Process: Retaliation and Perceived Effectiveness," Work and Occupations 10, No. 1 (February 1983): 3-28.
166. A. P. Brief and S. Motowidlo, "Prosocial Organizational Behaviors," Academy of Management Review 11 (1986): 710-725.
167. Greenberg, "Reactions to Procedural Justice in Payment Distributions."
168. U.S. Securities and Exchange Commission, Office of Investigations, "Investigation of Failure of the SEC to Uncover Bernard Madoff's Ponzi Scheme-Public Version," Report No. OIG-509, August 2009, p. 250. www.sec.gov/news/studies/2009/oig-509.pdf.
169. 2011 Corporate Governance and Compliance Hotline Benchmark Report, "A Comprehensive Examination of Organizational Hotline Activity from The Network." http://tnwinc.com/files/2011TNWbenchmarkingreport.pdf?webSyncID=24de8b7c-92b9-3074-a566-921c84284727&session GUID=bcd27041-3405-c274-b7bd-071a4be99052.
170. Maarten De Schepper, "Setting the Right Incentives for Whistleblowers," paper submitted for (European Master in Law and Economics, 2008-2009). www.emle.org/_data/Marten_De_Schepper_-_Setting_the_Right_Incentives_for_ Whistleblowers.pdf.
171. Carrick Mollenkamp, Lingling Wei, and Gregory Zuckerman, "States Widen Currency-Trade Probes," Wall Street Journal, February 3, 2011.
172. Deloitte Forensic Center, "Whistleblowing and the New Race to Report."
173. Patrick Collins, Lee Stein, and Caryn Trombino, "Consider the Source: How Weak Whistleblower Protection Outside the United States Threatens to Reduce the Impact of the Dodd-Frank Reward Among Foreign Nationals," Third Annual National Institute on the Foreign Corrupt Practices Act, Washington, D.C., 2010.
174. Curtis, "Whistleblower Mechanisms."
175. Robert Howse and Ronald J. Daniels, "Rewarding Whistleblowers: The Costs and Benefits of an Incentive-Based Compliance," University of Pennsylvania Scholarly Commons, Department Papers (School of Law), January 1, 1995. http://works.bepress.com/cgi/viewcontent.cgi?article=1017&context=ron ald_daniels.
176. Richard E. Moberly, "Sarbanes-Oxley's Structural Model to Encourage Corporate Whistleblowers," Brigham Young University Law Review (2006): 1108, n. 5.
177. Curtis, "Whistleblower Mechanisms." 2011 Corporate Governance and Compliance Hotline Benchmarking Report by The Network, Inc. and BDO Consulting. Reprinted with permission.
178. Howse and Daniels, "Rewarding Whistleblowers," p. 538.
179. U.S. Sentencing Guidelines Manual, § 8C2.5(f)(3)(C) (2010). www.ussc.gov/Guidelines /2010_guidelines/index.cfm.
180. U.S. Sentencing Guidelines Manual, § 8C2.5, cmt. n. 11 (2010).
181. "Principles of Federal Prosecution of Business Organizations," Memorandum from Mark R. Filip, Deputy Attorney General, to Heads of Department Components and United States Attorneys, August 28, 2008. www.usdoj.gov/opa/documents/corp-charging-guidelines.pdf.
182. www.corporatecomplianceinsights.com/2011/dos-and-donts-for-ceos-on-compliance-issues/.
183. 2010 Federal Sentencing Guidelines Manual, § 8B2.1, Commentary.
184. 31 U.S.C. §§ 3729-3733, also called "Lincoln Law." www.law.cornell.edu/uscode/31/3729.html,www.law.cornell.edu/uscode/31/3733.html.
185. www.ethicspoint.com/article/federal-false-claims-act.
186. Larry D. Lahman, "Bad Mules: A Primer on the Federal False Claims Act," 76 Oklahoma Bar Journal 901, (April 9, 2005). www.okbar.org/obj/articles_05/040905lahman.htm.
187. www.law.cornell.edu/uscode/31/3729.html.
188. www.taf.org/whyfca.htm.
189. See, for example, United States ex Rel. Lu v. Ou, 368 F.3d 773 (7th Cir. 2004).
190. www.law.cornell.edu/uscode/31/3730.html.
191. www.justice.gov/usao/pae/Documents/fcaprocess2.pdf.
192. John T. Boese, Civil False Claims and Qui Tam Actions, 3rd ed. (New York: Aspen Publishers, 2007), pp. 1-7.
193. www.law.cornell.edu/uscode/31/3730.html.
194. Michael Cohn, "CPA Receives $4.5M IRS Whistleblower Award," Accounting Today, April 8, 2011. www.accountingtoday.com/news/CPA-Receives-IRS-Whistleblower-Award-57972-1.html.
195. Ryan Donmoyer, "IRS Reward Lures More Americans to Turn in Tax Cheats," May 4, 2010. www.bloomberg.com/news/2010-05-04/americans-sic-irs-on-suspected-tax-cheaters-eight-times-a-day-agency-says.html.
196. Cohn, "CPA Receives $4.5M IRS Whistleblower Award."
197. FY 2009 Annual Report to Congress on the Use of Section 7623.
198. www.irs.gov/compliance/article/0,,id=180171,00.html.
199. www.irs.gov/IRM/part25.
200. www.irs.gov/compliance/article/0,,id=181292,00.html.
201. 25.2.2.3.8 at www.irs.gov/irm/part25/irm_25-002-002.html#d0e753.
202. www.irs.gov/compliance/article/0,,id=181290,00.html.
203. www.irs.gov/compliance/article/0,,id=181290,00.html.
204. www.irs.gov/irm/part25/irm_25-002-002.html#d0e1046.
205. Joint Committee on Taxation, Technical Explanation of H.R. 6408, The "Tax Relief and Health Care Act of 2006," as introduced in the House on December 7, 2006, at 89 (JCX-50-06), December 7, 2006.
206. Treasury Regulation § 301.7623-1(b)(2); see also http://law.justia.com/cfr/title26/26-18.0.1.1.2.19.68.17.html.
207. FY 2009 Annual Report to Congress on the Use of Section 7623.
208. www.irs.gov/pub/irs-utl/whistleblowerfy09rtc.pdf.
209. www.irs.gov/irb/2011-08_IRB/ar14.html.
210. "Ship Manager to Pay $4M for Oil-Pollution Repeat Offense," Professional Mariner, September 27, 2010. www.professionalmariner.com/ME2/dirmod.asp?sid=&nm=&type=news&mod=News&mid=9A02E3B96F2A415ABC72C B5F516B4C10&tier=3&nid=E87D5F74A2224068BE9D33CA1D2A3B29.
211. John Christoffersen, "Workers Rewarded for Cooperation in Oil Dump Case," Forbes.com, May 11, 2011.
212. See also Department of Justice, "Tanker Company Fined $4.9 Million for Falsifying Records and Obstruction of Justice," December 14, 2007, www.usdoj.gov.
213. 33 U.S.C. § 1908.
214. 35 U.S.C. § 292.
215. 590 F.3d 1295 (Fed. Cir. 2009).
216. 35 U.S. C. § 292 (a).
217. Solo Cup, 2010 U.S. App. LEXIS 11820 at 6-7n. 1.
218. 19 U.S.C. § 1619.
219. www.phillipsandcohen.com/State-False-Claims-Statutes.
220. Carrick Mollenkamp, Lingling Wei, and Gregory Zuckerman, "States Widen Currency-Trade Probes," Wall Street Journal, February 3, 2011.
221. www.phillipsandcohen.com/State-False-Claims-Statutes.
222. See www.ag.ny.gov/media_center/2011/jan/jan18a_11.html.
223. www.taf.org/NY-FCA-law.htm.
224. www.phillipsandcohen.com/State-False-Claims-Statutes/California.shtml.
225. www.phillipsandcohen.com/State-False-Claims-Statutes.
226. Marie Chêne, "Good Practice in Whistleblowing Protection Legislation (WPL)," U4 Helpdesk, Transparency International, July 1, 2009. www.U4.no.
227. For example, the United Kingdom Public Interest Disclosure Act permits discretionary rewards to be given by public authorities, such as Revenue or Customs. See note 4 of "Rewarding Whistleblowers as Good Citizens-Response to the Home Office Consultation," Public Concern at Work, November 30, 2007. http://www.pcaw.co.uk/policy/policy_pdfs/rewardingwhistleblowers.pdf.
228. Jarod S. Gonzalez, "A Pot of Gold at the End of the Rainbow: An Economic Incentives-Based Approach to OSHA Whistleblowing," Chicago-Kent College of Law, Employee Rights and Employment Policy Journal 14 (2010)
229. see also Richard Moberly, "Sarbanes-Oxley's Structural Model to Encourage Corporate Whistleblowers," Brigham Young University Law Review (September 2006): 1107.
230. Public Law 111-203, Title IX, § 922(h).
231. Mary J. Barker, Plaintiff, V. UBS AG and UBS Securities LLC, Defendants, No. 3:09-cv-2084 (CFD), United States District Court, D. Connecticut, January 26, 2011.
232. http://employmentlawgroupblog.com/wp-content/Barker-v.-UBS-MTD.pdf.
233. John Hill, "California Department of Education Settles Whistle-Blower Suit for $4.25 Million," Sacramento Bee, April 23, 2008.
234. www.thewhistlebloweradvisor.com/whistleblower-protection.
235. www.huffingtonpost.com/2011/02/11/food-safety-law-protectswhistleblowers_n_821989.html.
236. Naval Inspector General, "Reprisal (Military Whistleblower Protection)." www.ig.navy.mil/complaints/Complaints%20%20(Reprisal%20Military%20 Whistleblower%20Protection).htm.
237. 5 U.S.C. § 1221(e); www.law.cornell.edu/uscode/5/1221/html.
238. Kaja Whitehouse, "SEC Whistleblower Call Draws Few Tipsters," New York Post, February 23, 2011.
239. Quoting Thomas Sporkin, Director, SEC's Office of Market Intelligence, Just Anti-Corruption: Graft, The FCPA and Compliance, dated February 23, 2011, http://www.mainjustice.com/justanticorruption/2011/02/23/tips-to-secwhistleblower-program-reach-168.
240. "SEC Whistleblower Fund Is Juiced Up," Wall Street Journal, November 1, 2010
241. U.S. Securities and Exchange Commission, "Annual Report on Whistleblower Program, as Required by Section 21F(g)5 of the Securities Exchange Act of 1934," October 2010.
242. www.sec.gov/news/speech/2011/spch052511mls-item2.htm.