Best described as the Madoff-Enabling Law, the Grimm Act will: Punish employees who disclose violations of the Securities Exchange Act directly to the Securities and Exchange Commission (SEC). The Grimm Act forces whistleblowers to inform corporate wrongdoers that they are violating the law before contacting law enforcement, giving the wrongdoers the opportunity to hide their misconduct from investors. Strip the Securities Exchange Act of the current mandatory rewards provisions designed to encourage employees to risk their careers and expose large multi-million dollar, corporate fraud against shareholders. Allow corporations to use limitless shareholder funds to oppose whistleblowers, while imposing burdensome restrictions on the rights of corporate whistleblower employee to hire their own attorneys. Explicitly authorize corporations to establish "employment agreements" and "codes of conduct," restricting the right of employees to notify investors or the SEC about potential fraud. Firing whistleblowers under these newly established corporate codes "shall not constitute retaliation." Require the SEC to notify the company that it is being investigated, tipping off the wrongdoers.
Posted on: Mon, 26 Aug 2013 20:36:17 +0000
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