BlackRock has been charged by the SEC with removing whistleblower incentives in their separation agreements with employees, per the SEC. According to the Commission, BlackRock’s charges stemmed from allegations that the company forced employees to waive their ability to obtain whistleblower awards.
Provisions such as those in Dodd-Frank provide for monetary compensation to those who provide information to the SEC concerning securities law violations, provided certain criteria are met. Whistleblowers may also file anonymously.
Per the SEC, over 1,000 employees signed such agreements, in which the employee was forced to waive the right to monetary recovery as a condition for receiving separation payments from the company.
BlackRock paid $360,000 to settle the charges without admitting or denying guilt, according to reports. The firm also reportedly agreed to revise its separation agreement and to take remedial actions.
The attorneys at Malecki Law has experience representing whistleblowers in multiple areas, including those who wish to file complaints anonymously under Dodd-Frank.