Guest Post By: H. David Kotz
H. David Kotz is a Managing Director at Gryphon Strategies, a full-service investigation firm, which he joined in January 2012 after serving for over four years as the Inspector General for the SEC. He was a guest speaker at Epstein Becker & Green’s March 7, 2012 breakfast briefing, “2012’s Key Issues for Financial Services Employers.”
The head of the Securities and Exchange Commission’s (SEC’s) Whistleblower program reported on March 14, 2012 that the SEC Whistleblower program has been receiving a continuous volume of complaints since the program began in August 2011. From August 12, 2011 through September 30, 2011, the SEC whistleblower program received 334 complaints (an average of 7 per day) and according to the SEC, since that time frame, the volume has continued to be steady. The SEC is also reporting that in nearly all of the whistleblower complaints they have received, the whistleblowers have notified their employer’s internal compliance program of their claims. Sean McKessy, the head of the SEC’s Whistleblower program, stated on March 14, 2012, that in all but a handful of complaints, the whistleblowers have reported making the notification of the fraud internally.