whistleblower

Enron "whistleblower" a fraud?

Tue, 16 Oct 2007 06:59:59 -0400

Lynn Brewer has achieved fame with her new book Confessions of an Enron Executive: A Whistleblower's Story. She has given up to 200 speeches including the keynote address at a Sarbanes-Oxley conference hosted by the New York Stock Exchange. But now a USA Today investigation has raised claims about whether she has exaggerated her status as an Enron "executive" and as a "whistleblower." The paper calls her "an astute self-promoter who parlayed an undistinguished 32-month stint as an Enron employee into a lucrative career in the corporate ethics industry." Another zinger: "Her transformation from back-office researcher to international corporate governance heroine is astonishing." This is quite a story.

For more:
- here's the article

Will this Sarbox whistleblower fare any better?

Mon, 09 Jul 2007 20:01:39 -0400

We've noted that financial whistleblowers have not fared well, despite the protections offered by Sarbanes-Oxley. In fact, many of them have fared poorly. Will the case of Anthony Menendez and Halliburton be any different? Menendez, former director of technical accounting research and training, filed under the whistleblower protection provision in May. He says he was fired for informing others about accounting problems that would affect possibly billions in revenue. The main issue seems to be bill and hold practices that determine when revenue is booked on products and services that have not yet been delivered. The difference this time is that Congress has taken an interest; a congressional committee has asked for information. Halliburton is a high-profile company right now. Of course, the SEC has already taken an interest and found nothing untoward.

For more:
- here's an article from Chron.com
- The limits of whistleblower protection. Article

ALSO NOTED: Hiring a big-name accountant is big news; SEC given clean bill of health on controls;

Mon, 20 Nov 2006 19:01:38 -0500

> Mayor Bloomberg of New York City continues his campaign to reform Sarbox, part of his effort to keep NYC the world's financial center. People are eagerly awaiting the commissioned report from McKinsey & Co. I am interested in what it will say about necessary changes by top Wall Street firms--perhaps more price competition for offerings. Article

> A new study suggests that companies that lack a strong presence of independent directors were more likely to grant dubiously timed options as part of compensation packages. This is not surprising; good fodder for activist shareholders. Article

> It's interesting how the hiring of a big-name accountant (the title chief accounting officer is catching on a bit) has become big news. You'll want to make sure you get the new executive's Sarbox experience into the press release and hopefully into any resulting articles. Here's a good example.

> The Administrative Review Board of the Department of Labor recently found that some employee-supervisor emails were not enough to establish fraud. Thus the employee was not accorded whistleblower protection under Sarbanes Oxley. Article

> People found it humorously ironic when the GAO rapped the Securities and Exchange Commission for, of all things, it's audit and controls process. The problems have been apparently solved. The GAO has given the agency a thumbs up regarding its internal controls. Article

> We brought you news recently that top accounting firms want to move to a future of Internet-based, principles-oriented, forward-looking auditing. Here's some more commentary on the proposal. Article

> A bit more on all the executive shuffling in 2006. Article

> A new survey has identified the top supply chain risks. Article

> New search from SEC combs through 15 million pages. The Associated Press has some fun with it, looking for the seven deadly sins. Article

And Finally... Skilling goes to prison next month. Article

ALSO NOTED: Bad news for first Sarbox whistleblower, More Sarbox-driven buyouts coming for tech and software companies;

Mon, 09 Oct 2006 20:01:38 -0400

> A U.S. district judge has decided not to give David Welch, the first person accorded Sarbox whistleblower protection, his job back. The Department of Labor had previously ordered a small-town Virginia bank to reinstate him. So far, would-be whistleblowers have little reason to cheer. Article

> The best time to hire middle- and senior-level accounting professionals? October. One firm says hiring now will make it more likely the new recruit can start in December, which gives them a month break in before the new year starts. Release

> The chief administrative officer of the PCAOB has decided to step down. Paul Schneider says he wants to work in the private sector, with start-up companies or in distressed situations. Article

> Another Sarbanes Oxley whistleblower suit has been filed, this one against Nektar Therapeutics. Article

> Steve Jobs owns up to options backdating, notes that Sarbox makes backdating much less likely. Article | Meanwhile, ex-CFO Fred Anderson steps down from board. Article

> More Sarbox-driven buyouts coming for tech and software companies. Article

> The first nonprofit medical center to be certified compliant with Sarbox is announced. Article

> Survey: The benefits of automating compliance. Article

> Fifth WorldCom accountant suspended by SEC. Article

And finally ... Don't end up like this. Cartoon