Companies Ignore Whistleblowers at Their Peril
July 4, 2014
Jordan A. Thomas offers some helpful tips on how companies should handle internal whistleblower complaints
The U.S. Securities and Exchange Commission last month brought its first ever whistleblower retaliation case against Paradigm Capital Management. The hedge fund paid $2.2 million to settle allegations that it demoted its head trader after he reported potential illegal trading to the commission.
Jordan Thomas, a former SEC official and the attorney who represented the Paradigm trader, says that companies would do well to follow a few simple rules: "Pay attention to what people are telling you. Don't retaliate. Show appreciation and say thank you for bringing it to our attention. And don't hunt an anonymous whistleblower."