Search Site
Menu
Blowing the Whistle and Nobody Hears

When a person assumes the role of a whistleblower to stop the illegal and fraudulent activity of a corporation or governmental agency, it is understood that there may be harsh retaliatory acts taken by the violating organization. One reaction that the whistleblower does not expect is the deafening silence that many hear when they report their claims.

SEC has a history of silence

In 2012, the Securities and Exchange Commission’s (SEC) whistleblower program received 3,001 tips and issued only one tipster award. In fact, the SEC has a history of not responding to complaints. Broker Leyla Wydler delivered a letter to the SEC in 2003 complaining about her former employer, the Stanford Financial Group. In 2002, Stanford terminated Wydler for refusing to sell financial products that Stanford Financial knew was misleading to investors.

Wydler never heard from the SEC. In 2004, Wydler called the local Fort Worth, Texas office. An employee heard the report, but no follow-up occurred. Four-years later, Stanford was caught running a $7 billion Ponzi scheme.

Harry Markopolos, a Chartered Financial Analyst and Certified Fraud Examiner led a team of three other investigators who spent nine years attempting to notify the SEC about a Ponzi scheme led by Bernie Madoff. Markopolos claims that the SEC had all the information about Madoff’s scheme years before the scheme collapsed.

The law does not provide for speedy responses

The Tax Relief and Health Care Act of 2006 created a new framework for the consideration of whistleblower submissions and opened a Whistleblower Office within the Internal Revenue Service. Similarly, the Dodd-Frank Act created the Office of the Whistleblower for the SEC. Like the IRS program, the law merely establishes a framework and system to receive complaints of violation and bring claims. Even with a director, eight attorneys and three paralegals, the OWB has been extremely slow in investigating complaints. In 2012, the agency only issued one award to one whistleblower.

The future need not be silent

When reviewing the success of the biggest whisteblowers, take notice of the efforts necessary to get the relevant agency to respond. A Texas whistleblower attorney can help you file a claim and be heard.

Leave a Reply

Your email address will not be published. Required fields are marked *

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra