RI’s Gaming Vendor IGT Hit with $500K SEC Penalty for Punishing Whistleblower
Friday, September 30, 2016
Specifically, the SEC announced that casino-gaming company IGT has agreed to pay a fine for firing an employee with several years of positive performance reviews because he reported to senior management and the SEC that the company's financial statements might be distorted.
In its second whistleblower retaliation case since the Dodd-Frank Act authorized the agency to bring such charges, the SEC found that the employee was removed from significant work assignments within weeks of raising concerns about the company's cost accounting model. He was terminated approximately three months later," said the SEC.
SEC on the Record
"Strong enforcement of the anti-retaliation protections is critical to the success of the SEC's whistleblower program. This whistleblower noticed something that he felt might lead to inaccurate financial reporting and law violations, and he was wrongfully targeted for doing the right thing and reporting it," said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement.
According to the SEC's order, IGT conducted an internal investigation into the allegations made by the whistleblower, who did not oversee the company's accounting functions, and determined its reported financial statements contained no misstatements.
Without admitting or denying the SEC's findings, IGT agreed to pay the $500,000 penalty and cease and desist from committing or causing any further violations of Section 21F(h) of the Securities Exchange Act of 1934.
The SEC’s investigation was conducted by Brent W. Wilner, Rhoda H. Chang, and Gary Y. Leung, and the case was supervised by Diana K. Tani, John W. Berry, C. Dabney O’Riordan, and Michele W. Layne of the Los Angeles Regional Office. The SEC appreciates the assistance of the U.S. Labor Department's Occupational Safety and Health Administration.
Related Slideshow: Top 25 Luckiest Places for Winning Lottery Tickets in Rhode Island
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25. Gulf Express
698 Broadway, Pawtucket
24. Vicker's Liquors
23. Healy News Store
22. Stop & Shop
446 Putnam Pike, Smithfield
21. Stop & Shop
1360 West Main Road, Middletown
20. Solar Gas
1815 Smith Street, North Providence
19. Twin River
18. Cumberland Farms
17. Breads 'N' Stuff
16. Cumberland Farms
785 Tiogue Street, Coventry
15. Sandy Lane Gas + Conv
1015 Sandy Lane, Warwick
14. Lakewood Liquors
774 Warwick Avenue, Warwick
13. Dan's Convenience
12. Stop & Shop
1128 Mineral Spring Avenue, North Providence
11. Fast Freddie's
471 Putnam Pike, Greenville
10. Stop & Shop
300 Quaker Lane, Warwick
8. Shaw's Supermarket
7. Sam's Food Mart
460 Pontiac Avenue, Cranston
6. A+B Mart
951 Pontiac Avenue, Cranston
5. Phred's Drug
4. A+T Casali Liquors
3. Stop 'N' Go
2. Cumberland Farms
704 Main Street, West Warwick
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