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The Morning Risk Report: Former Enron Executive Says SEC Whistleblower Program Is a Game Changer |
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| Sherron Watkins warned Enron management about the energy company's problematic accounting practices in 2001. PHOTO: THOMAS BOUTWELL |
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Good morning. Sherron Watkins, the Enron Corp. executive who warned management about fraud, said in an interview with me that not having confidentiality and protection for whistleblowers can have a cost. Nearly 20 years after the energy company’s collapse, Ms. Watkins, 61 years old, said being labeled a whistleblower has been a challenge to her career ever since. If current whistleblower protections had been in place at the time, she said, she would have been able to report her concerns to the Securities and Exchange Commission while keeping her name confidential. [Continued below...] |
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“Different things I’ve looked into, there was always just a door kind of slammed at some point,” Ms. Watkins said. These included consulting gigs with companies that provide directors and officers liability education for boards. She said she also interviewed to be an adjunct professor for executive sessions at Rice University’s business school, a job she didn’t get in the end. A representative for Rice declined to comment on personnel matters. Her revelations come as more corporate insiders are blowing the whistle on possible wrongdoing through programs that give out awards for helpful tips and provide confidentiality and anti-retaliation protections to those who come forward. |
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| From Risk & Compliance Journal |
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Rio Tinto Taps Former Unilever Compliance Officer for Top Legal Post |
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Rio Tinto PLC has recruited a former compliance officer for Unilever PLC and Nestlé SA to serve as its chief legal officer, overseeing compliance issues for a company that has been at the center of high-stakes legal battles and reputational crises in recent years. |
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President Biden Signs Bill to Fund CFTC Whistleblower Program |
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| A semiconductor plant in Nantong, China. Washington is increasingly concerned about maintaining the edge the U.S. and allies have in semiconductors over China. PHOTO: STR/AGENCE FRANCE-PRESSE/GETTY IMAGES |
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A low-profile government committee that reviews business deals for national security concerns is receiving expanded emphasis as part of the Biden administration’s plan to compete with China. The Committee on Foreign Investment in the U.S., or Cfius, is looking to share information with similar review bodies set up by allies and is paying closer attention to Biden priorities, including securing supply chains. In June, Cfius ordered a hold on a Chinese investor’s planned acquisition of South Korean-based semiconductor maker Magnachip Semiconductor Corp. to review the deal. |
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Dozens of states filed an antitrust lawsuit against Alphabet Inc.’s Google Wednesday related to practices on its Google Play app store, according to a public court docket and a representative of one state. The antitrust suit in the U.S. District Court for the Northern District of California was led by Utah and signed onto by New York, California, and other states, the docket shows. It relates to Google’s practices on its Play store, said a spokesman for Utah’s attorney general. |
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- The Biden administration will push regulators to confront consolidation and perceived anticompetitive pricing in the ocean shipping and railroad industries as part of a broad effort to blunt the power of big business to dominate industries, according to a person familiar with the situation.
- Robinhood Markets Inc. is on a collision course with regulators over a controversial practice that generates most of its revenue, as the online brokerage gears up for a highly anticipated initial public offering.
- Lawyers for Theranos Inc. founder Elizabeth Holmes asked a federal judge to place new restrictions on the scope of evidence that prosecutors can present at her coming criminal-fraud trial, arguing her defense is hampered by the loss of a database with millions of blood-test results.
- Former President Donald Trump has sued Facebook, Twitter and Google, seeking to restore his online profile after he was suspended from most social-media platforms following the Jan. 6 riots in the U.S. Capitol. Mr. Trump was the most prominent plaintiff seeking class-action status against the tech companies, claiming he has been wrongly censored by them in violation of his First Amendment rights. The lawsuits were filed Wednesday in U.S. District Court in Miami.
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| More than 90% of Didi’s first-quarter revenue came from ride-hailing in China, according to its listing prospectus. PHOTO: TINGSHU WANG/REUTERS |
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China’s regulatory action against Didi Global Inc. threatens to impinge on the Chinese ride-hailing behemoth’s growth as it faces increasing competition at home and struggles to expand into new countries and new lines of business. While the Beijing-based company’s U.S. initial public offering valued it recently at more than $67 billion, Didi faces a raft of challenges even as economies around the world bounce back from the pandemic. It is seeking to stay in the black after years of losses from burning cash to win customers. |
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| Kaseya is still working to fully patch the cybersecurity flaw in its VSA software. PHOTO: KASEYA/REUTERS |
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The software company linked to a massive ransomware spree that began last week and has affected hundreds of organizations across the globe was notified in early April of a cybersecurity vulnerability used in the attack, according to the Dutch security researcher group that discovered the issue. Kaseya Ltd., a Miami-based software supplier that helps technology-service providers manage computer networks, was told of a serious cybersecurity hole in its Kaseya VSA software on April 6, Victor Gevers, chairman of the Dutch Institute for Vulnerability Disclosure, said Wednesday. Mr. Gevers’s organization, which is a volunteer-run security group, discovered the flaw. |
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| The Bill & Melinda Gates Foundation’s boosted endowment will fund more work in infectious diseases, gender equality and U.S. education, among other causes. PHOTO: DAVID RYDER/BLOOMBERG NEWS |
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The Gates Foundation said that Melinda French Gates could eventually depart from its leadership if she and Bill Gates determine they can’t work together, as the philanthropy laid out plans for its future oversight. The Bill & Melinda Gates Foundation said Wednesday that it would add trustees and that its controlling philanthropists will add an additional $15 billion to the foundation’s $49.9 billion endowment, their largest single contribution since 2000. The money will be used to fund grants across the foundation’s work on issues including infectious diseases, gender equality and U.S. education, Mark Suzman, the foundation’s chief executive officer, said in an interview. |
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| A man holds an Egyptian flag as the Ever Given is seen on the Suez Canal. PHOTO: AMR ABDALLAH DALSH/REUTERS |
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- The container ship that blocked the Suez Canal for days earlier this year set sail Wednesday after its owners reached a multimillion-dollar compensation deal with Egyptian authorities for its release, ending a monthslong saga involving passage through a critical global trade route.
- The number of job openings held at record levels headed into the summer as employers sought to fill positions from a limited pool of workers.
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