Friday, September 24, 2010

Friday Roundup

In one way, shape or form, whistleblowing is the theme of this week's Friday Roundup.

SEC Timeline on Various Dodd-Frank Provisions

The SEC has a lot on its plate in implementing various rules pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank").

Included on that list is the new whistleblower provisions established by Dodd-Frank (see here for a prior post).

Interested in following the SEC's progress?

If so, here are the important dates (or months as the case may be) to keep in mind.

October - December 2010

SEC plans to "propose rules to implement a Whistleblower Incentives & Protection Program," "report to Congress on Whistleblower Program," and "Establish Whistleblower Office."

January - March 2011

SEC plans to "adopt rules to implement a Whistleblower Incentives & Protection Program."

Another Dodd-Frank provision many in the FCPA universe are following is Section 1504 - "Disclosure of Payments by Resource Extraction Issuers" (see here for a prior post).

Here is the planned timeline for that provision.

October - December 2010

SEC to "propose rules regarding disclosure by resource extraction issuers"

January - March 2011

SEC to "adopt rules regarding disclosure by resource extraction issuers"

Khuzami on the SEC's Whistleblower Program

Earlier this week Robert Khuzami (Director, Division of Enforcement - SEC) had this to say about the SEC's whistleblower program in testimony before the Senate:

"The Division currently is in the process of drafting the proposed rules applicable to the Whistleblower Program, including rules setting forth the procedures for whistleblowers to submit original information to the Commission and for the Commission to make awards to whistleblowers. We also have begun the process of staffing the Commission’s Whistleblower Office. As we create the Program and the Office, we will be mindful of competing interests, including: (i) a desire to encourage whistleblowers to provide the Commission with high-quality tips regarding potential violations of the federal securities laws, and (ii) a need to avoid creating undue burdens on the Commission and the constituencies that we protect and regulate that could result from groundless whistleblower submissions."

Furmanite Corporation

Kendall Law Group is one of the new breed of FCPA "plaintiff" firms that have sprung up in recent months. The sequence is usually predictable. A company discloses an FCPA issue or inquiry. Within days the firm, or one of the other firms that is also seeking to capitalize on what, at times, seems like an FCPA feeding frenzy, issues a press release such as this one. These releases have become so common, that it is easy to gloss over them.

However, Kendall Law Group's September 16th release (here) regarding Furmanite Corporation was a bit different. Here is what it said, in relevant part:

"The Kendall Law Group was recently notified by a confidential source of potential violations of the Foreign Corrupt Practices Act (FCPA) by Furmanite. The company was allegedly made aware of potential violations of the FCPA as early as 2008. The firm’s source indicates that cash gifts were given to representatives of state-owned enterprises to maintain and develop customer relations. Furmanite has two subsidiaries in China, Furmanite Mechanical Technology Services Co. Ltd. which operates out of Shanghai and Furmanite East Asia Ltd. which is based in Hong Kong. Furmanite has entered into business relationships with state-owned enterprises in China, such as the recently announced delivery of equipment to China HuanQiu Contracting and Engineering Company, a branch of the China National Petroleum Corporation, China’s largest integrated oil and gas company."

Is Kendall Law Group representing a whistleblower in connection with Dodd-Frank's new whistleblower provisions? Pursuant to the new whistleblower provisions, a whistleblower may be represented by counsel.

Furmanite, "the worldwide innovator and leader in comprehensive on-site and on-line plant and pipeline maintenance" according to its website (here), is an issuer on the New York Stock Exchange.

To my knowledge Furmanite has not issued a release / disclosure about this issue.


A good weekend to all.

No comments:

Post a Comment