"Sullivan v. Harnisch and SEC Proposed Whistleblower Rules Bolster Internal Compliance Programs While Creating Catch-22 for Compliance Officers"

Sam Lieberman, Of Counsel and Jennifer Rossan, Partner, of the Litigation Group of Sadis & Goldberg have contributed an article to the March 18th edition of The Hedge Fund Law Report entitled "Sullivan v. Harnisch and SEC Proposed Whistleblower Rules Bolster Internal Compliance Programs While Creating Catch-22 for Compliance Officers". This article discusses two recent developments bolstering hedge fund internal compliance programs despite the Dodd-Frank Act Congress passed in July 2010. First, Sullivan v. Harnisch confirms that hedge funds can require compliance personnel to report fraud internally, with no state law remedy if they are fired in retaliation. Second, proposed SEC rules would make compliance, legal and audit employees effectively ineligible for a whistleblower award unless they first report internally and their employer fails to respond, without specifying a federal retaliation remedy. Funds should adapt internal compliance programs to incorporate these developments, which add pressure on compliance personnel reporting fraud internally.

To read the full article, please click on the link below:  http://www.sglawyers.com/wp-content/uploads/2015/04/19.pdf?lbisphpreq=1

If you would like to discuss the article in greater detail with either Sam or Jennifer, their contact information is below.

Sam Lieberman, 212.573.8164, slieberman@sglawyers.com

Jennifer Rossan, 212.573.8783, jrossan@sglawyers.com

Cheryl Spratt