In late December 2022, in conjunction with an omnibus spending bill, Congress passed the Anti-Money Laundering Whistleblower Improvement Act, which President Biden signed into law on December 29, 2022. This law permits whistleblowers to receive 10% to 30% of any monetary sanction the government imposes over $1 million for money laundering. Money laundering is
The “S” in ESG: Tying Compensation To DEI Goals
As companies plan and strategize about next steps regarding the “S” of ESG, i.e., Social initiatives, we are often asked about best practices in promoting Diversity, Equity, and Inclusion (DEI) goals in the workplace. Companies increasingly are seeking to tie compensation to DEI goals. Doing so demonstrates the company’s commitment to DEI, and rewards positive
Refreshing Whistleblower Processes for the Remote Workplace: Best Practices
At the onset of COVID in 2020, the Wall Street Journal reported that over a three-month period, there were a deluge of tips, complaints and possible referrals to the U.S. Securities and Exchange Commission (“SEC”). More recently, the SEC has reported record whistleblower awards. And although the extent to which remote work has contributed
Expanded Protections For Whistleblowers Require Strong Commitment to Compliance Programs
With so much happening during the holidays, who wants to think about preventive steps and corporate compliance? Unfortunately, expansion of New York’s “whistleblower protection” laws coupled with the ongoing pandemic-related return to work issues make it increasingly critical for employers to ring in the New Year with an understanding of these new developments. High on
U.S. Securities and Exchange Commission Surpasses $100 Million in Awards Through Whistleblower Program
On August 30, 2016, the U.S. Securities and Exchange Commission (“SEC”) announced that it surpassed the $100 million mark in monetary awards for whistleblowers. Through the enactment of the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), Congress established the whistleblower program to incentivize whistleblowers
False Claims Act Particularity Standard Still Unclear But New York & New Jersey Cases Provide Additional Guidance
We are seeing a growing number of False Claims Act (“FCA”), 31 U.S.C. §§ 3729 – 3733 cases where defendants test the sufficiency of relators’ pleadings, which is the heightened pleading standard under Rule 9(b). Rule 9(b) acts as a gatekeeping function by requiring that “in alleging fraud” a “party must state with particularity the
DOJ Settlement Yields Nice Change for Whistleblowers
Agreeing to pay a total of $15.5 million, a diagnostic imaging company has settled with the Department of Justice under the False Claims Act for allegedly submitting claims to Medicare for services never completed.
Claims purportedly were made to federal Medicare and to New York and New Jersey Medicaid Programs for CT scans and other
New York Rolls Out Internal Governance Requirements for Non-Profits
Beginning July 1, 2014, New York State will require non-profit organizations to institute certain internal governance controls. The Non-Profit Revitalization Act (N.Y. N-PCL §§ 715-a, 715-b (2014)) imposes new requirements on whistleblower and conflict of interest policies, as well as financial reporting and audit procedures.
The required whistleblower policy, designed to promote an employer’s zero