RI’s Gaming Vendor IGT Hit with $500K SEC Penalty for Punishing Whistleblower

Friday, September 30, 2016

 

View Larger +

The State of Rhode Island's lottery and gaming vendor IGT (formerly GTECH) has been fined $500,000 by the Securities and Exchange Commission (SEC) for illegally punishing an employee for whistleblowing, according to SEC documents.

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.

View Larger +

"Bringing retaliation cases, including this first stand-alone retaliation case, illustrates the high priority we place on ensuring a safe environment for whistleblowers,” said Jane A. Norberg, Chief of the SEC’s Office of the Whistleblower.  "We will continue to exercise our anti-retaliation authority when companies take reprisals for whistleblowing efforts."

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

Here are the 25 stores with the most lottery winners of more than $10,000 in Rhode lsand in the past two years...

View Larger +
Prev Next

25. Gulf Express

698 Broadway, Pawtucket

 
Average Ticket Winnings: $8,333
 
Total Ticket Winnings: $25,000
 
Ticket Wins: 3
View Larger +
Prev Next

24. Vicker's Liquors

274 Bellevue Avenue, Newport
 
Average Ticket Winnings: $10,000
 
Total Ticket Winnings: $30,000
 
Ticket Wins: 3
View Larger +
Prev Next

23. Healy News Store

231 Robinson Street, Wakefield
 
Average Ticket Winnings: $10,667
 
Total Ticket Winnings: $32,000
 
Ticket Wins: 3
View Larger +
Prev Next

22. Stop & Shop

446 Putnam Pike, Smithfield

 
Average Ticket Winnings: $11,167
 
Total Ticket Winnings: $33,500
 
Ticket Wins: 3
View Larger +
Prev Next

21. Stop & Shop

1360 West Main Road, Middletown

 
Average Ticket Winnings: $12,763
 
Total Ticket Winnings: $38,288
 
Ticket Wins: 3
View Larger +
Prev Next

20. Solar Gas

1815 Smith Street, North Providence

 
Average Ticket Winnings: $13,177
 
Total Ticket Winnings: $39,532
 
Ticket Wins: 3
View Larger +
Prev Next

19. Twin River

100 Twin River Road, Lincoln
 
Average Ticket Winnings: $13,333
 
Total Ticket Winnings: $40,000
 
Ticket Wins: 3
View Larger +
Prev Next

18. Cumberland Farms

609 Killingsly Street, Johnston
 
Average Ticket Winnings: $15,223
 
Total Ticket Winnings: $106,564
 
Ticket Wins: 7
View Larger +
Prev Next

17. Breads 'N' Stuff

1669 Main Street, West Warwick 
 
Average Ticket Winnings: $17,000
 
Total Ticket Winnings: $85,000
 
Ticket Wins: 5
View Larger +
Prev Next

16. Cumberland Farms

785 Tiogue Street, Coventry

 
Average Ticket Winnings: $17,250
 
Total Ticket Winnings: $172,500
 
Ticket Wins: 10
View Larger +
Prev Next

15. Sandy Lane Gas + Conv

1015 Sandy Lane, Warwick

 
Average Ticket Winnings: $19,513
 
Total Ticket Winnings: $58,540
 
Ticket Wins: 3
View Larger +
Prev Next

14. Lakewood Liquors

774 Warwick Avenue, Warwick

 
Average Ticket Winnings: $20,000
 
Total Ticket Winnings: $80,000
 
Ticket Wins: 4
View Larger +
Prev Next

13. Dan's Convenience

2699 Post Road, Warwick
 
Average Ticket Winnings: $22,790
 
Total Ticket Winnings: $68,370
 
Ticket Wins: 3
View Larger +
Prev Next

12. Stop & Shop

1128 Mineral Spring Avenue, North Providence

 
Average Ticket Winnings: $25,177
 
Total Ticket Winnings: $75,832
 
Ticket Wins: 3
View Larger +
Prev Next

11. Fast Freddie's

471 Putnam Pike, Greenville

 
Average Ticket Winnings: $26,667
 
Total Ticket Winnings: $80,000
 
Ticket Wins: 3
View Larger +
Prev Next

10. Stop & Shop

300 Quaker Lane, Warwick

 
Average Ticket Winnings: $26,667
 
Total Ticket Winnings: $80,000
 
Ticket Wins: 3
View Larger +
Prev Next

9. 7-Eleven

1128 Mineral Spring Avenue, North Providence
 
Average Ticket Winnings: $26,667
 
Total Ticket Winnings: $80,000
 
Ticket Wins: 3
View Larger +
Prev Next

8. Shaw's Supermarket

8 Chapel Hill Boulevard, Cranston 
 
Average Ticket Winnings: $28,750
 
Total Ticket Winnings: $115,000
 
Ticket Wins: 4
View Larger +
Prev Next

7. Sam's Food Mart

460 Pontiac Avenue, Cranston

 
Average Ticket Winnings: $31,944
 
Total Ticket Winnings: $95,832
 
Ticket Wins: 3
View Larger +
Prev Next

6. A+B Mart

951 Pontiac Avenue, Cranston

 
Average Ticket Winnings: $50,166
 
Total Ticket Winnings: $250,832
 
Ticket Wins: 5
View Larger +
Prev Next

5. Phred's Drug

1300 Oaklawn Avenue, Cranston
 
Average Ticket Winnings: $132,032
 
Total Ticket Winnings: $528,129
 
Ticket Wins: 4
View Larger +
Prev Next

4. A+T Casali Liquors

1360 West Main Road, Middletown
 
Average Ticket Winnings: $173,333
 
Total Ticket Winnings: $520,000
 
Ticket Wins: 3
View Larger +
Prev Next

3. Stop 'N' Go

1569 Plainfield Pike, Johnston
 
Average Ticket Winnings: $178,333
 
Total Ticket Winnings: $535,000
 
Ticket Wins: 3
View Larger +
Prev Next

2. Cumberland Farms

704 Main Street, West Warwick

 
Average Ticket Winnings: $191,667
 
Total Ticket Winnings: $575,000
 
Ticket Wins: 4 
View Larger +
Prev Next

1. Convenience Plus

1501 Atwood Avenue, Johnston

 
Average Ticket Winnings: $267,500
 
Total Ticket Winnings: $1,070,000
 
Ticket Wins: 4
 
 

Enjoy this post? Share it with others.

 
 

Sign Up for the Daily Eblast

I want to follow on Twitter

I want to Like on Facebook

X

Stay Connected — Free
Daily Email