What are examples of SOX protected activity (protected whistleblowing)?

SOX Protected Whistleblowing

Whistleblowers are protected under SOX for providing information, causing information to be provided, or otherwise assisting in an investigation regarding any conduct disclosing conduct that they reasonably believe violates:

• federal criminal prohibitions against securities fraud, bank fraud mail fraud, or wire fraud;
• any rule or regulation of the Securities and Exchange Commission (“SEC”); or
• any provision of federal law relating to fraud against shareholders

when the information or assistance is provided to or the investigation is conducted by:

• a federal regulatory or law enforcement agency;
• any Member of Congress or any committee of Congress; or
• a person with supervisory authority over the employee (or such other person working for the employer who has the authority to investigate, discover, or terminate misconduct).

Examples of SOX protected activity (SOX protected whistleblowing) include disclosures concerning:

• Circumventing internal controls or failing to maintain adequate internal controls over financial reporting.
• Submitting false internal control certifications. Section 906 of SOX mandates that the chief executive officer and chief financial officer of any issuer to certify that the periodic reports fully comply with the requirements of section 13(a) or 15(d) of the Securities Exchange Act and that the information contained therein fairly present the financial condition of the issuer.
• Failing to prepare financial statements in accordance with generally accepted accounting principles (GAAP).  See 17 C.F.R. §§ 244.100(c).
• Concealing material off-balance sheet transactions, which is required by Section 401(a)(ii) of SOX.
• Inaccurately recording personal use of corporate funds as business expenses in a company’s books and records.
• Failing to disclose Section 403 transactions involving management and principal stockholders. See 17 C.F.R. § 229.404.
• Falsifying corporate accounting to underreport corporate expenses.
• Wire fraud, i.e., a deceptive scheme to deprive the victim of money or property carried out using a wire transmission.

The experienced and effective Sarbanes-Oxley whistleblower lawyers at Zuckerman Law have extensive experience representing corporate whistleblowers.  U.S. News and Best Lawyers® have named Zuckerman Law a Tier 1 firm in Litigation – Labor and Employment in the Washington DC metropolitan area in the 2022 edition of “Best Law Firms.” We represent whistleblowers nationwide.

 

 

For more information about SOX whistleblower protection, download our free guide titled Sarbanes-Oxley Whistleblower Protection: Robust Protection for Corporate Whistleblowers:

SOX Whistleblower Retaliation

SOX Whistleblower Remedies

SOX Prohibition Against Whistleblower Retaliation

Sarbanes-Oxley Whistleblower Attorneys: Tier 1 Firm

We have assembled a team of leading SOX whistleblower lawyers to provide top-notch representation to Sarbanes-Oxley (SOX) whistleblowers.  Recently Washingtonian magazine named two of our attorneys top whistleblower lawyers. U.S. News and Best Lawyers® have named Zuckerman Law a Tier 1 Law Firm in the Washington D.C. metropolitan area.

The whistleblower lawyers at Zuckerman Law have substantial experience litigating Sarbanes Oxley whistleblower retaliation claims and have achieved substantial recoveries for officers, executives, accountants, auditors, and other senior professionals.  To schedule a free preliminary consultation, click here or call us at 202-262-8959.

• Matt Stock is a Certified Public Accountant, Certified Fraud Examiner, and former KPMG external auditor.  As an auditor, Mr. Stock developed an expertise in financial statement analysis, internal controls testing and fraud recognition, and he uses his auditing experience to help whistleblowers investigate and disclose complex financial frauds to the government and obtain damages for retaliation.  He is lead author of SEC Whistleblower Program: Tips from SEC Whistleblower Attorneys to Maximize an SEC Whistleblower Award.
• Zuckerman served in a senior position at the Office of Special Counsel, where he oversaw investigations of whistleblower retaliation claims and whistleblower disclosures and enforced the Whistleblower Protection Act.   He also served on the Department of Labor’s Whistleblower Protection Advisory Committee, which makes recommendations to the Secretary of Labor to improve OSHA’s administration of federal whistleblower protections.
• Jason Zuckerman was recognized by Washingtonian magazine as a “Top Whistleblower Lawyer” in 2020, 2018, 2017, 2015, 2009, and 2007, selected by his peers to be included in The Best Lawyers in America® in the category of employment law (2011-2021), and selected by his peers to be listed in SuperLawyers (2012 and 2015-2021) in the category of labor and employment law.  Zuckerman is rated 10 out of 10 by Avvo, based largely on client reviews, and rated AV Preeminent® by Martindale-Hubbell based on peer reviews.
• The firm has published extensively on whistleblower rights and protections and regularly speaks nationwide at seminars and continuing legal education conferences.  We blog about new developments in whistleblower law at the Whistleblower Protection Blog.