SOX Whistleblowers Protection

The President’s Corporate Fraud Task Force created in July 2002, recently issued a report which showed the number of senior executives convicted of Fraud. Some high- profiel CFO’s, including Enron’s Any Fastow ane WorldCom’s Scott Sullivan were not on the list because their cases were handled by another fraud team with the U.S. Attorney’s office. The charges brought included securities fraud, insider trading, market manipulation, false statements, stock-option backdating, conspiracy, money laundering, and violations of the Foreign Corrupt Practices Act. In addition to the convictions, the task force noted, more than $1 billion in forfeitures has been distributed to victims of corporate fraud.The task force cited the role that Sarbanes-Oxley and SOX Whistleblower Protections played in facilitating convictions (or, more precisely, plea deals, which occurred in more than 75 percent of cases). In fact, three CFOs were convicted based on direct violations of SOX. New securities-fraud provisions from Title 18 of the U.S. Code, Section 1348, played a role in more than 50 cases. 
 

Among the 1,236 people convicted by the Task Force were:  214CEOs & presidents;  53 CFOs; 23 Corporate counsels or attorneys; and 129VPs.

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