These firms were charged under Rule 21F-17(a), which prohibits any actions that obstruct an individual's ability to report potential securities law violations directly to the SEC.
The Securities and Exchange Commission (SEC) has reached settlements with seven public companies for breaching regulations designed to protect whistleblowers. The companies were found to have implemented employment, separation, and other agreements that hindered employees from reporting potential misconduct to the SEC.
In total, the companies have agreed to pay over $3 million in civil penalties to resolve these charges. The penalties are as follows:
⦁ Acadia Healthcare Company, Inc., agreed to pay a $1,386,000 civil penalty;
⦁ a.k.a. Brands Holding Corp. agreed to pay a $399,750 civil penalty;
⦁ AppFolio, Inc., agreed to pay a $692,250 civil penalty;
⦁ IDEX Corporation agreed to pay a $75,000 civil penalty;
⦁ LSB Industries agreed to pay a $156,000 civil penalty;
⦁ Smart for Life, Inc. agreed to pay a $19,500 civil penalty; and
⦁ TransUnion agreed to pay a $312,000 civil penalty.
“The SEC’s whistleblower program strengthens market integrity by providing protection and incentives for those who come forward and report potential violations of the securities laws,” said Jason J. Burt, Director of the SEC’s Denver Regional Office. “According to the SEC’s orders, among other things, these companies required employees to waive their right to possible whistleblower monetary awards. This severely impedes would-be whistleblowers from reporting potential securities law violations to the SEC.”
“Ensuring that potential whistleblowers can communicate directly with the Commission is a critical part of the SEC’s oversight mandate,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.
These firms were charged under Rule 21F-17(a), which prohibits any actions that obstruct an individual's ability to report potential securities law violations directly to the SEC. As part of the settlement, each company has committed to compliance with this rule going forward and has already undertaken measures to amend their agreements to prevent future violations.
The SEC’s ongoing investigation is being led by Eric Day of the Denver Regional Office, with support from Helena Engelhart Bean and the SEC’s Office of the Whistleblower, including Kelly Breakey and Elizabeth McMurray. Oversight of the investigation is provided by Danielle R. Voorhees, Nicholas P. Heinke, and Mr. Burt, also from the Denver Regional Office.
THANK YOU FOR YOUR TIME
DISCLAIMER
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of The Steven Wick Blog. Any content provided by our bloggers or authors are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.
If you decide to purchase any item using our authorized referral/affiliate links, be aware, we may receive a portion of the sales as commission, i.e. if you purchase a product/service.
To shop, select or click buttons, links or images, you will be redirected to product pages. Please, carefully research before you purchase. Feel free to share and leave a comment, we would love to hear from you. Your feedback is very important to us.
For more like this, music, literature, news, fashion, savvy political commentary, and fascinating features, sign up for the Steven Wick News Letter.
We here at the Steven Wick Blog are so proud of our work, we’d like to thank you for being a part of our community. However, our mission to share so much from music, literature, lifestyle to fashion is a 24/7 undertaking! We need your help to continue our work. Your financial donation will help us not only keep the lights on, but enable us run many more stories in the future to come. DONATE HERE
Message Of Gratitude
We deeply appreciate your contribution in making our blog the top brand among customers.
Without you as our readers, we wouldn't have achieved this level of success. Your satisfaction is our utmost priority, and we assure you that we will always be a reliable source for your entertainment needs.
Your trust in us is invaluable, and we are grateful for your generous donations as our readers.
A number of you took an extra effort and opted to contribute as monthly donors. By doing so, your generous contribution is multiplied by twelve throughout the year, thereby amplifying the impact you have on our work. Your dedication truly makes a significant change, and we sincerely appreciate your valuable support.
Your support has been instrumental in our brand's success.
Thank you for being with us throughout the past year.
As we continue to grow and enhance our business, we pledge to prioritize your needs and interests.
Best Regards
The Steven Wick Team
Comments