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Sarbanes-Oxley News & Developments
Embarrassed SEC: Let Our Tipsters DishThe SEC is red-faced over bungling a major whistleblower tip.
> > The staff at the SEC are being told to pay special attention to whistleblowers and other tipsters. The SEC is still getting over its Boston office bungling a major whistleblower tip, which cost the agency the glory of busting open the Putnam Investments mutual fund scandals.
The SEC is getting slammed for inexplicably turning away the whistleblower, Peter Scannell, an insider who tried to hand the commission a gift-wrapped case against Putnam. Instead, he went to state authorities, who broke the case.
SEC Enforcement Chief Stephen Cutler is reviewing why the Boston office blew off the Boston tipster last March. He said the SEC has recently made improvements in how it handles its 1,000 daily complaints, and more changes could be in the works. Cutler said his office of Internet enforcement now logs all incoming tips and reports how each is handled.
Source: New York Post
Published:2003-11-05
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