LexPro Research LLC Introduces Whistleblower Hotline

Organizations using hotlines can reduce fraud by 40%, according to ACFE study

Mar 16, 2016, 14:17 ET from LexPro Research LLC

STAMFORD, Conn., March 16, 2016 /PRNewswire/ -- LexPro Research LLC, a due diligence and risk mitigation firm, has created a Corporate Disclosure and Ethics Hotline for businesses. The firm, which focuses on corporate investigations and background checks, now provides businesses the opportunity to detect and prevent fraud, while protecting whistleblowers.

"It's a natural extension of what we do," said partner Michael Levien. "We are often called after a fraud has occurred; offering the hotline can potentially help detect it or even prevent it."

According to the Association of Certified Fraud Examiners (ACFE) Report to the Nations on Occupational Fraud and Abuse, hotlines are not typically used — yet 41% of all fraud cases rely on tips. Using a hotline gives businesses the ability to monitor for potential fraud while also protecting whistleblowers from retaliation.

In an effort to curb retaliation, the Security and Exchange Commission's (SEC) Office of the Whistleblower and the Occupational Safety and Health Administration (OSHA) have dedicated themselves to protecting whistleblowers. New OSHA standards, released in January 2016, "lower the burden of proof required for OSHA to issue a merit determination against an employer," writes Elizabeth Bowersox in her recent article on the subject. Before OSHA issued this new standard, an employer only need to show it would have taken the same action regardless of the [whistleblower's] disclosure and OSHA would drop the case.

OSHA's revised policies already led to JP Morgan reinstating a whistleblower, after he was wrongfully fired when he "raised concerns over the firm's failure to properly report financial transactions to government regulators," according to the Associated Press. OSHA also insisted JP Morgan pay the employee $200,000 in back pay, medical expenses and compensatory damages.

LexPro Research's hotline was developed by a former special agent from the Office of the Inspector General at the Department of Defense (DoD) and the Central Intelligence Agency (CIA), who designed and implemented whistleblower programs for each agency.  LexPro Research now offers private businesses a similar program to potentially identify and prevent fraud, as well as protect whistleblowers.

About LexPro Research
LexPro Research LLC is a leading provider of domestic and international risk mitigation and business intelligence services. LexPro Research specializes in high-level due diligence and background research, corporate investigations, and litigation support.

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SOURCE LexPro Research LLC