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Apr 08, 2010

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Nicole Williams

I agree with Mr. Smallberg that whistleblowers should have more protection.

It will be nice to see more of these white-collar criminals brought to justice and receive the punishment that they deserve.

Michael Smallberg

Despite the crucial role that whistleblowers often play in uncovering corporate wrongdoing, they rarely receive help when they face retaliation from their employers. A study conducted a few years ago found that only 3.6 percent of Sarbanes-Oxley whistleblowers win relief through the initial administrative process, and that only 6.5 percent win on appeals. The study also found that administrative judges have often strictly construed or even misapplied the SOX provisions on whistleblower protections: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=977802

In addition to improving the SEC's whistleblower reward program, Congress should also incorporate provisions from Sen. Dodd's financial regulatory reform bill that would strengthen protections for whistleblowers who assist the SEC with any of its investigations or administrative/judicial actions.

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