Friday, January 7, 2011

Email to E&C professionals re whistleblower rules

To: ________
Sent: 1/__/2011 ____ _.M. Central Standard Time

Re: Ethics & compliance comments on SEC proposed whistleblower rules

Dear ____________,

The SEC's proposed whistleblower rules pursuant to Dodd Frank have drawn hundreds of comments, including many comments from the ethics and compliance community. I have submitted this comment on January 3rd, in which I state the following basic contention:
It is submitted that (i) in dealing with corporate wrongdoing, the law is unacceptably deficient from a deterrence standpoint in the way the law fails to punish officers, employees and other individuals who participate in and are responsible for the design, implementation, and carrying out of corporate acts that comprise corporate wrongdoing, (ii) the law is mistaken in its willingness to assume punishment of a corporation can achieve adequate deterrence, and (iii) the law fosters a mindset and a willingness of some persons to take advantage of the foregoing deficiencies and to benefit from them at the expense of innocent parties, such as shareholders . Until these deficiencies are addressed by lawmakers, regulators, judges and others, there will be similar deficiencies connected with the whistleblower program, the program will fall short in achieving deterrent objectives, and the program will be at risk of being unduly exploited for personal gain and benefit in a fashion similar to that referred to in the preceding sentence.

Accordingly, lawmakers, regulators and others should first correct the foregoing deficiencies in the law before the proposed whistleblower program is put in place.
I hope you will read and think about the entirety of my submitted comment.

Thank you.

Rob Shattuck

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