Free Essay

Leg500 Assignment 1

In: Business and Management

Submitted By tanikab
Words 815
Pages 4
Whistleblowing and Sarbanes-Oxley
Assignment 1
LEG 500/Professor Augustine
February 3, 2014

A Whistleblower by definition is someone who exposes a person or organization engaged in an illicit activity. Whistleblowers expose those that commit misconduct or an alleged dishonest and/or illegal activity within an organization. The infraction must be a violation of a law, rule or regulation and/or a direct threat to public interest, like fraud, health and safety violations and corruption.
In almost every part of society the way information is given becomes the most important objective in the fight against misconduct and malpractice. Obtaining information can be difficult as those involved often make it their best interest in hiding the information from the public and authorities. It really helps to receive information regarding the wrongdoing from someone who has actually witnessed the incident, willing to come forth with intricate details.
Whistleblowing can provide resolutions to certain situations by opening thought to be nonexistent and disclosed information sources and connections. Reasons behind whistleblowing can vary. Such as, when someone observes the wrongdoing within their workplace and requests to speak to a figure head of the organization to their morals. Whistleblowing becomes a much stronger case when it involves a large portion of the public.
The publicly traded company that I researched was the whistleblowing of Bernard L. Madoff Securities LLC. The company was a Wall Street investment company founded by Bernie Madoff whose sons blew the whistle in 2008 to SEC after Bernie confused to them that he had conned investors out of $64.8 billion. Madoff knowingly along with his accountants paid investors out of their own return instead of profits. Madoff was sentenced to 150 years in prison.
Yes I believe the Madoff brothers were justified in reporting what their father had shared with them. It was immoral and illegal what Bernie had done to all those investors involved and it showed them that their fortune was stolen and all a lie. However it is hard to determine just how much they knew prior to turning Bernie in. It is also a sad case for the entire family as not only will Bernie spend his remaining life in prison, he was ordered to pay over $170 billion in restitution. Also as result of this one brother has since committed suicide and the other died after years of battling mantle cell lymphoma.
The Sarbanes-Oxley Act of 2002 (“SOX”) contains significant protections for corporate whistleblowers. Given its diverse civil, criminal and administrative provisions, the statute may be considered, over time, one of the most important whistleblower protection laws.
The SOX's whistleblower protection provisions have no limit when it comes to giving legal resolution for employees terminated due to retaliation like other laws related to whistle blowing. There are also four other stipulations tied into whistleblowing protection along with providing job security to employees decide to come forth. The first, the law makes it a requirement that all publicly traded corporations create internal and independent “audit committees.” This serves a function of auditing establishing protocols of how to file internally confidentially and safely.
Secondly, SOX has created new ethical standards for attorneys who practice before the Securities and Exchange Commission (SEC). This requires attorneys, under certain circumstances, to blow the whistle on their employer or “client.”
Then, the SOX amended the federal obstruction of justice statute making retaliation a criminal act against those who were truthful, covering employers all over the nation.
Lastly, Section 3(b) of the SOX has a rule that enforces clause of the SOX. This section states that “a violation by any person of this Act [i.e. the SOX] . . . shall be treated for all purposes in the same manner as a violation of the Securities Exchange Act of 1934.” This section grants jurisdiction to the SEC to enforce every aspect of the SOX, including the various whistleblower-related provisions. It also provides for criminal penalties for any violation of the SOX, including the whistleblower-related provisions.
However, whistleblowers are not always protected by the SOX law. If the company survives the whistleblower may be seen as disloyal black balled by their current or future employers, making one's current job, or securing a new job, difficult.

Resources:
Mowrey. Megan, et.al. (n.d). Mary Business Law Review, Vol. 1/Issue 2 Does Sarbanes-Oxley Protect Whistleblowers? The Recent Experience of Companies and Whistleblowing Workers Under SOX. Retrieved from http://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=1012&context=wmbl)
O’Donnell.Anne C. (n.d).Sarbanes-Oxley Whistleblower Protection Extended by Supreme Court Retrieved from http://corporate.findlaw.com/litigation-disputes/sarbanes-oxley-whistleblower-protection-extended-by-supreme-court.html#sthash.l83N8JBf.dpuf
Vardi. Nathan. (September 3, 2014). The Madoff Tragedy Continues With Andrew Madoff's Death. Retrieved from http://www.forbes.com/sites/nathanvardi/2014/09/03/the-madoff-tragedy-continues-with-andrew-madoffs-death/

Similar Documents

Free Essay

Leg500 Assignment 1

...Whistleblowing and Sarbanes-Oxley Act Student Name College or University Name LEG500 – Law, Ethics, and Corporate Governance Professor’s Title Date Whistleblowing and Sarbanes-Oxley The federal government passed and put into law the Sarbanes-Oxley Act of 2002 (SOX) to primarily protect whistleblowers from retaliation for reporting corporate fraud and financial malfeasance to the government. The negligence became apparent in the 1990’s when corporations such as Enron, HealthSouth, Tyco and WorldCom were found to have grossly overstated their earnings. This cost billions of dollars in losses to shareholders and caused the near-collapse of the stock market (Prentice, 2010, p. 17). The companies were able to hide, scam or misrepresent their earnings due to the dot-com boom, soaring investments, and auditor fraud. The Sarbanes-Oxley Act contains many sections, sub-sections and creation of other agencies to enforce it. It was a sweeping change to standard reporting practices and was created to restore investor confidence, hold corporations and auditors financially and criminally accountable, and protect whistleblowers. Prior to the creation of SOX the whistleblower had no protection from retaliation by the organization. Whistleblowers had fears of criminal prosecution, bodily harm and job loss if they reported the misdeeds of their employer both publicly and privately. The Sarbanes-Oxley Act of 2002 redefined the whistleblower. An examination of the characteristics of a......

Words: 1159 - Pages: 5

Free Essay

Leg500 Week 3 Assignment 1: Whistleblowing and Sarbanes-Oxley

...Describe the key characteristics of a whistleblower Person or any employee who reports the illegal activities occurring in an organization or who has insider knowledge of immoral, or illegitimate practices taking place in a business either through witnessing the behavior or being told about it. Such practices can include illegality, frauds, mismanagement or abuse of power. Whistleblowers can use different channels to report wrongdoings, including internal channels (i.e., within their organization, such as directly reporting misbehavior and incidents to their immediate supervisor, union representative, or human resources department) or external means (i.e., going outside their organization to, for example, a third party ombudsman, an external hotline, or an applicable government regulatory agency related to the type of wrongdoing behavior. Internal whistleblowing mechanisms for public companies must comply with the provisions of the Sarbanes-Oxley Act of 2002 (SOX). Two of the many corporate governance provisions of SOX place whistleblower-friendly requirements on issuers. SOX section 301 requires the audit committee of every issuer to establish procedures for the receipt, retention, and treatment of complaints regarding accounting, internal control, or auditing matters, and to maintain the anonymity of employee complaints regarding accounting and auditing matters (i.e., the establishment of a whistleblower hotline). SOX section 806 provides protection for employees who blow...

Words: 752 - Pages: 4

Premium Essay

Employers Duty of Care

...1 Assignment #3-Employer’s Duty of Care Andrea Williams-Weston Strayer University LEG500-Business Law, Ethics & Legal Governance Dr. Boneita Campbell, Professor May 15, 2011 2 1. Explain whether Jake’s actions are in or out of “his scope of employment.” “Scope of employment is defined as actions of an employee which further the business of the employer and are not personal business, which becomes the test as to whether an employer is liable for damages due to such actions under the doctrine of respondent superior (make the master answer),” (LAW.COM, 2011). In this video, Jake is the service manager of the Rally Management Team. The company currently is advertising a special for free oil change. Jake is providing his customers with a basic inspection as well as the free oil change. Herman (employer) does not require Jake (employee) to do these inspections; however, Jake is a certified mechanic and must provide a duty of loyalty and care to his customers and to the business. In addition, once Jake has inspected these cars, he may find issues that may bring revenue to the business. 2. Explain whether or not Herman is responsible for Jake’s injury. Yes, Herman is responsible for Jake’s injury. “With the adoption of the Occupational Safety...

Words: 685 - Pages: 3

Free Essay

Legal and Ethica Considerations

...LEG500, Law, Ethics, and Corporate Governance Strayer University LEG500 13 Legal and Ethical Considerations in Marketing, Product Safety and Intellectual Property PharmaCare, week10 Assignment LEG500, Law, Ethics, and Corporate Governance Strayer University LEG500 13 Legal and Ethical Considerations in Marketing, Product Safety and Intellectual Property PharmaCare, week10 Assignment Review of PharmaCARE/CompCARE To first establish whom each entity is; PharmaCare is one of the world’s most successful pharmaceutical companies. A compassionate, decent well operated business that manufactured high-quality goods that saved millions of lives and increased the condition of life for millions of others. PharmaCare designed a top-selling diabetic medication that could have reduced the progression of Alzheimer’s disease; their pharmacist began reformulating the drug to increase the effect. CompCARE came into being in order to steer clear of FDA investigation; PharmaCARE created a wholly owned establishment, CompCARE, to function as a compounding pharmacy to sell the new creation to people on a prescription basis. CompCARE set up business in an upscale administrative center near its main corporate office, and to conserve money and time, did a quick, low cost makeover and appointed a man by the name of Allen Jones to run the operations’ clean room. * Research three to five ethical issues relating to marketing and advertising, intellectual property, and......

Words: 2708 - Pages: 11

Premium Essay

Leg500

...McQuaig LEG500 Introduction Magnificent Bookkeeping Accounting Firm Inc., is a trusted bookkeeping and accounting firm in the local community, that has been in business for over 10 years. We offer employment opportunities to up and coming accountants in hopes that they will become a part of our magnificent firm and/or move on representing our firm as a great educator of successful accountants. Recently we have experienced a few challenging employees and this report will discuss how we address those issues with those employees according to the situation, our company policies and the employment at will doctrine. Upon employment with our company, in any capacity, employees are orientated on our mission, goals and values, their responsibilities and expectations, as well as, educated on the employee handbook in great detail. All employees are giving in written and are signed in agreement that employment with Magnificent Bookkeeping Accounting Firm Inc., is at will; that neither the firm nor the employee has an expressed or implied a contract of employment and employment can be terminated at any time by either party. Skills, Competence, and Abilities Magnificent Bookkeeping Accounting Firm Inc., has an excellent recent graduated hiring program. The program offers the graduates the opportunity to work while gaining experience in the accounting profession. The graduates are expected to meet set goals, attain certain skills and complete assignments.......

Words: 1713 - Pages: 7

Free Essay

Business

...Running head: ELETRONIC SURVEILLANCE OF EMPLOYEES Electronic Surveillance of Employees Lorrie Bass Strayer University Assignment # 1 Submitted in Partial Fulfillment Of the Requirements for the Course LEG500: Law and Ethics in the Corporate Lateefah Muhammad Fall 2011 Contents Lorrie Bass 3 Date: January 12, 2012 3 Abstract 4 Discussion 1 Explain where an employee can reasonably exspect to have privacy in the work place…………..4 Answer 5 Discussion 2……………………………………………………………………………………………………………..5 In the office there is typically two types of workspaces, an open area, in which there are several desks and he conversations can be overheard, or an enclosed office, in which-when the door is closed-conversations cannot be heard and where one would exspect virtually total privacy. Explain whether it makes a difference if an employee ia an open area or in an enclosed office. 5 Answer 5 Discussion 3 6 Explain if Herman’s need to know whether his sales person are honest is a sufficient ground for utilizing electronic surveillance 6 Answer 6 Discussion 4 7 Explian to what extent an emlpoyer can engage in electronic surveillance of an employee 7 Answer 7 Discussion 5……………………………………………………………………………………………………………..8 Explain to what the inclusion innocent, unaware third parties in such surveillance determine whether it is legal……………………………………………………………………………………8 ......

Words: 823 - Pages: 4

Free Essay

Whistleblowing and Sarbanes-Oxley Act

...Week 3 Assignment 1: Whistleblowing and Sarbanes-Oxley Act Michelle M. Webb Dr. Boneita Campbell LEG500 Law, Ethics, and Corporate Governance April 20, 2015 . Week 3 Assignment 1: Whistleblowing and Sarbanes-Oxley Act Who are Whistleblowers and what do they do? Could you be a Whistleblower? There are several definitions for the term whistleblower. The most accurate and significant definitions to the subject of this paper are the definition given by the Black’s Law Dictionary and the one by the Whistleblower Protection Act (WPA). The Black’s Law Dictionary defines a whistleblower as a worker who declines to participate in and informs on the unlawful and/or unjust actions of his co-workers or his employer ("The Law Dictionary", n.d.). The WPA defines whistleblowing as the disclosure of facts an employee deems proof of unlawful acts of, blatant misconduct, exploitation of authority, and could jeopardize public safety (Molzen, 2002). Over the years many U.S. workers have observed unlawful transgressions within the workplace and have come forward to report these actions. The actions of these noble citizens (whistleblowers) have been instrumental in saving enormous amounts of money and countless lives over the years. However, these whistleblowers fail to receive the recognition and admirations they deserve for doing the right thing. More often than not they are badgered, bullied, demoted, and terminated from their jobs for their efforts. Therefore, the act of......

Words: 1070 - Pages: 5

Premium Essay

Employment-at-Will

...Job Competency and Employment-At-Will Professor Ilya Enkishev, Strayer University LEG500, Assignment 1 April 16, 2012 Assignment 1, Scenario 1: The employee seems to be unable to learn the computer applications that are basic to her job responsibilities, but, consistently “tells” her boss that she is “a good worker and a genius” and that he does not “appreciate her”. Even after a few months of training and support, she is unable to use the computer tools to be productive and efficient in completing the required tasks. Describe what steps you would take to address the following scenario involving skills, competence, and abilities: As a manager and supervisor, it is my responsibility to see that employees in my department are successfully contributing to the firm. The new employee, Jennifer, has been hired under the assumption that she is capable of fulfilling the specific responsibilities within her position. I would first meet with Jennifer to discuss the status of her projects. During this session, I would encourage her by stressing the importance of her position and how its contributions directly influence the success of the firm. The two of us could review her project timelines and the steps and skills needed to meet each deadline. By reviewing the late and incomplete status of her assigned tasks, she would gain a broader, more objectionable understanding of how her work is assessed by the firm. I would assure her that her......

Words: 1129 - Pages: 5

Free Essay

Employment at Will Doctrine

...Strayer University-LEG500 | Assignment 1 | Employment-at-Will Doctrine | Question 1 Since the employer has completed the required training classes and the employee is still unable to complete their duties then the only option the employer would have would be to terminate the employee. Based on the employment-at-will doctrine the employer has the right to terminate the employee at any time. Since the employee cannot perform the duties she was initially hired for then the employer has the legal right to find a qualified replacement. The employer could prove that she was unable to complete her required duties even after months of being trained therefore the employer would have legal rights in terminating the employee. The employee would not have much of a case if for whatever reason they decided to sue the employer. The employer did everything in their power to train and help the employee but in the end they weren’t qualified for the position. If the position required specific skills the employer should have been more specific and selective when choosing an employee. They should have made sure they had all the skills or at least most of the skills needed to complete the required daily duties. The small amount of skills they didn’t have could have been acquired within a short amount of time with necessary training. This case doesn’t fall into any of the exceptions when it comes to employment-at-will. The employer hired an employee and they were unable to......

Words: 1125 - Pages: 5

Premium Essay

Leg500 #1

...Law, Ethics, and Corporate Governance Professor Nekia S. Hackworth, Esq. Assignment 1: Employment-At-Will Doctrine Strayer University: LEG500 October 31, 2012 Employment-at-will is a legal rule that developed in the nineteenth century; giving employers unfetter power to “dismiss their employee at will for good cause, for no cause, or even for cause morally wrong, without being thereby guilty of a legal wrong (Halbert & Ingulli, 2012, p. 49). The most common protected categories are those that protect an employee's civil rights based on age, race, sex, religion, national origin, color, disability including the Americans with Disability Act (ADA), or pregnancy. An employer is also prohibited from discharging an employee for whistle blowing, or because the employee has filed a claim for workers' compensation. Acts that run counter to public policy, such as sexual harassment, are also exceptions to the employment at-will doctrine. Finally, an employer may not terminate an employee where an implied employment contract exists (Sarbanes-Oxley Act of 2002, 2006). 1. Describe what steps you would take to address the following scenario involving skills, competence, and abilities: The employee seems to be unable to learn the computer applications that are basic to her job responsibilities, but consistently “tells” her boss that she is “a good worker and a genius” and that he does not “appreciate her.” Even after a few months of training and support, she is unable...

Words: 1837 - Pages: 8

Free Essay

Employment-at-Will

...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwer...

Words: 1289 - Pages: 6

Premium Essay

Bus 520 Assignment 1

...Assignment 1: Employment-At-Will Doctrine By: LEG500 – Law, Ethics & Corporate Governance Professor: January 28, 2013 Jennifer, a recent graduate, is unable to learn the computer applications that are basic to her job functions although she has undergone training for several months. When management tries to address the issue Jennifer feels devalued. In an effort to get Jennifer up to speed management should start by reviewing their training process as well as their approach to speaking with Jennifer regarding her inefficient use of the system. According to an article in the International Journal of Business and Management, “Training is a process which is planned to facilitate learning so that people can become more effective in carrying out aspects of their work.” (Canadian Center of Science and Education, 2012). Management should have a well organized training process which identifies training needs, generates training plan, implements and records training material, and evaluates training progress. Management should be assertive and follow the steps listed in; “the systematic training cycle” to ensure proper training is tailored to Jennifer’s individual learning needs (Canadian Center of Science and Education, 2012). 1. Identify training needs. Management should have a checklist that identifies minimum job requirements. The checklist should include the efficient use of the computer applications that are basic to the job function. Jennifer and management......

Words: 1299 - Pages: 6

Premium Essay

Will at Doctrine

...Assignment Two: Employment-at-Will Doctrine Linda M Zaccarillo LEG500 Law, Ethics and Corporate Governance Note: This assignment is submitted on July 31, 2014 to Professor Sliben in fulfillment of a requirement for successful course completion. Assignment One: Employment-at-Will Doctrin In this paper I will be acting as a recently-hired Chief Operating Officer in a midsize company preparing for an Initial Public Offering. I will also I will analyze the emoloyment-at-will doctrine, determine if any exceptions and liabilities exist, and give a brief definition. I will also discuss Pennsylvania employement-at-will doctrine. Employment-at-Will Doctrine Employment-at-will doctrine means the common law rule that holds that whenever an employment relationship is of an indefinate duration, either party- the employer or the employee-may terminate the relationship at any time,for good cause or bad, in good faith or with malice(Halbert & Ingulli, 2012. p 46). John John is not protected by the employment-at will doctrine. The reason that I can fire him is because his interent blasting is a direct violation of company policy. There is no privacy when posting on the internet. When you post things on the interent you are posting for the whole world to see. John is not covered by any laws to protect him from being fired. There is also no way that he ccan contest the firing because he is violatiating......

Words: 1931 - Pages: 8

Free Essay

Fmla

...Assignment 2, Family Related Issues Instructor Theresa Dike Law, Ethics, and Corporate Governance – LEG500 May 1, 2011 1. Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. The way that the Family and Medical Leave Act (FMLA) is written, it does not specify whether or not a biological parent participated in the upbringing of the child or not. The definition of a parent is broad for the purpose of FMLA use. A parent is defined as a biological parent, adoptive parent, step parent, foster parent or an individual who assumed duties as your parent. An individual that assumes duties as your parent is called “loco parentis”. If an employee is trying to take leave for his or her loco parentis they may be required to provide documentation of the relationship. In this case Tony has asked to take leave to move his father from the nursing home to his apartment. According to FMLA the parent must be qualified as having a “serious illness” In my opinion moving his parent of the nursing home isn’t a qualifying event according to FMLA standards. Regardless, the answer to the question is, no it doesn’t matter if the biological parent had anything to do with the biological child for the child to take advantage of FMLA. 2. Explain whether the size of the business can have any effect on whether Tony is eligible for family leave under......

Words: 1359 - Pages: 6

Premium Essay

The Original Shithead

.... Assignment 1: Employment-At-Will Doctrine Dayene L. Candeia Severiano LEG500– Law, Ethics & Corp. Governance 04/28/2013  Dr. Charles Fleming As a manager and supervisor of an accounting department, discuss the following issues related to the employment-at-will doctrine and liability of an employer based on actions and responses to the employee’s behavior and actions. Jennifer, a recent graduate, has recently been hired by your accounting firm out of college. Upon being hired, she engages in a number of different behaviors that need your attention. 1. Describe what steps you would take to address the following scenario involving skills, competence, and abilities: * The employee seems to be unable to learn the computer applications that are basic to her job responsibilities, but, consistently “tells” her boss that she is “a good worker and a genius” and that he does not “appreciate her”.  Even after a few months of training and support, she is unable to use the computer tools to be productive and efficient in completing the required tasks. The employee was hired for the specific position which requires the use of the computer applications to complete the required tasks. However, there is obviously a mismatch between her skills and the required work for that position. The computer applications are basic to her job which means that if she really was “a good worker and a genius” she would be able to learn quickly and apply that knowledge and those...

Words: 1582 - Pages: 7