First reward indicates that the SEC has credible cases and is moving quickly to resolve the cases and compensate whistleblowers
NEW YORK, Aug. 22, 2012 /PRNewswire-USNewswire/ -- The following is a statement by Mesirow Financial Consulting's Senior Managing Director Bert Lacativo on The Securities and Exchange Commission's (SEC) issuance of its first award under the whistleblower program:
"Yesterday's announcement by the SEC's Office of the Whistleblower that it has rewarded $50,000 to a whistleblower, while not the millions that many believe whistleblowers would receive, is a clear indication that the SEC has credible cases and is moving relatively quickly to resolve the cases and reward whistleblowers.
"This news indicates that the whistleblower program is up and running, although its effectiveness and success have yet to be measured.
"I am confident that the office will work with deliberate diligence to deal with whistleblowers' complaints; I also believe that there will be early, prompt and decisive action taken to send clear messages to violators that the government is serious about ferreting out and ultimately deterring fraudulent activity.
"At this time, companies must be vigilant in proactive anti-fraud activities and vigorously investigate suspected wrongdoing and emphasize a "no tolerance" corporate culture. They should re-evaluate how employees can report internal wrongdoing to minimize the likelihood that an employee may feel that they are better off by reporting their issue directly to the government rather than the company. Additionally, companies should re-visit their readiness to deal with whistleblower complaints, whether they come from internal sources or through government channels.
"Not only is there a lot of money at stake for companies and shareholders, there are reputational issues that you cannot put a price on. Any company that does not have an internal compliance program already in place, or has not re-evaluated internal controls since Dodd-Frank was enacted, is at risk of suffering the type of serious monetary and reputational backlash that could result in irrevocable damage."
Mesirow Financial Consulting (MFC) is a full-service financial and operational advisory consulting firm, providing corporate recovery, litigation, investigative and intelligence services, valuation, interim management, distressed M&A and capital raising, due diligence and technology advisory services on a global basis. For more information, visit the Company's website at: http://www.mesirowfinancial.com/mfc/
KCSA Strategic Communications
SOURCE Mesirow Financial Consulting