Assignment 1 Whistleblowing and Sarbanes Oxley Due Essay

938 WordsMay 8, 20154 Pages
Whistleblowing and Sarbanes-Oxley Due Artize L. Johnson Professor: Steve Harris LEG 500 Law, Ethics, & Corporate Governance 26 April 2015 According to Halbert, Ingulli, & Frey (2015), whistleblowers are people who decide to report unethical or illegal activities, usually activities under the control of their employers. They may be working for private companies, nonprofit organizations, or for the government. A whistleblower is an individual working in an organization who decides to expose the misconduct, misbehavior, or illegal actions occurring in that organization. Making the decision to expose these actions can be very difficult to disclose with the fear of repercussion. The information being disclosed to…show more content…
Employers will threaten to fire or suspend a whistleblower, being able to combat retaliation will help in this fight. J.P. Morgan Chase & Co. is a publicly traded company that has been in the news for whistleblowing in the last 12 months. In March of 2014, the New York Federal Court awarded Keith Edwards, a former employee of J.P. Morgan, $64 million dollars for his part in the Whistleblowing of a case that defrauded the U.S. government. J.P. Morgan Chase & Co., were submitting false claims to U.S. government to insure flawed home loans (Stempel, 2014). For more than a decade, JP Morgan Chase & Co. submitted thousands of mortgages for insurance by the Federal Housing Administration or the Department of Veterans Affairs that did not qualify for government guarantees. J.P. Morgan admitted to failing to report to agencies that their internal reviews revealed problems also. During the year 2003 through 2008 Keith Edwards was the Assistant Vice President of a government-insuring unit with J.P. Morgan. During his tenure, Mr. Edwards believed that Wall Street and his own company J.P. Morgan Chase & Co. were being deceitful in their actions. Mr. Edwards wanted to show that companies involved in deceitful action should be held accountable for their actions, he became known as a whistleblower for his actions. In 2008 J.P. Morgan fired Keith Edward for action in exposing their organization. As the result of Mr. Edwards exposing the

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