• Exclusives
  • Qui Tam
  • FCPA
  • SEC
  • CFTC
  • Tax & AML
  • Whistleblower of the Week
  • Opinion
  • Podcast
  • Features
Subscribe
  • FAQs
No Result
View All Result
Whistleblower Network News
The Truth at Any Cost.
Qui Tam, Compliance and Anti-Corruption News.
  • Exclusives
  • Qui Tam
  • FCPA
  • SEC
  • CFTC
  • Tax & AML
  • Whistleblower of the Week
  • Opinion
  • Podcast
  • Features
Subscribe
No Result
View All Result
Whistleblower Network News
No Result
View All Result
Home Corporate SEC

SEC Whistleblowers Allege Financial Intermediaries Are Cheating 401ks and Pensions Out of Billions of Dollars

Geoff SchwellerbyGeoff Schweller
November 12, 2020
in Corporate, Dodd-Frank, News, SEC
Reading Time: 3 mins read
401ks whistleblowers
Share on TwitterShare on FacebookShare on LinkedInEmail

Three separate whistleblowers have filed disclosures with the U.S. Securities and Exchange Commission (SEC), alleging that financial intermediaries of 401ks and pensions are short-changing their retirement plan clients by pocketing billions of dollars that rightfully belong to retirement plans. According to Forbes, the whistleblower complaints focus on how financial intermediaries systemically conceal and pocket billions in mutual fund “omnibus” payments.

The three whistleblower complaints were filed between May 2018 and October 2020. They claim that financial intermediaries serving as custodians, recordkeepers and trustees to 401ks and pensions are pocketing billions of dollars through secretive omnibus payments.

Mutual funds openly acknowledge that they make omnibus payments to financial intermediaries. However, according to Forbes, these payments have long been shrouded in secrecy as mutual funds and intermediaries “refuse to permit retirement plan sponsors to view the agreements to determine either how the payments are calculated or the actual dollar amounts related to their specific 401ks and pensions.”

The SEC whistleblowers allege that billions of dollars that rightfully belong to retirement plans are being paid instead to financial intermediaries through these secretive omnibus payments. The omnibus payments may undermine the integrity of the nation’s 401ks and pensions by detrimentally impacting the investments, costs, and net performance of retirement plans and investment accounts. The whistleblowers allege that this is an industry-wide practice and urge the SEC to take immediate action.

Through the SEC Whistleblower Program, qualified whistleblowers, individuals who voluntarily provide original information that leads to a successful enforcement action, are entitled to a monetary award of 10-30% of funds recouped by the government. Whistleblower award payments are made out of a fund entirely financed through monetary sanctions paid to the SEC by securities law violators.

The SEC Whistleblower Program additionally provides anti-retaliation protections to whistleblowers, including confidentiality. Whistleblowers are able to anonymously file disclosures to the SEC.

Read:

SEC Whistleblowers Say 401ks And Pensions Are Cheated Out Of Billions In Mutual Fund Payments

Protect Yourself: Purchase the New Whistleblower Handbook Protect Yourself: Purchase the New Whistleblower Handbook Protect Yourself: Purchase the New Whistleblower Handbook
Tags: Corporate FraudDodd-Frank ActSEC
Geoff Schweller

Geoff Schweller

Geoff Schweller is a contributing editor with Whistleblower Network News and writes about breaking whistleblower news, SEC whistleblowers, IRS whistleblowers, and CFTC whistleblowers. Geoff graduated from Hamilton College with a degree in Sociology and minors in French & Francophone Studies and Cinema & New Media Studies. While at Hamilton, Geoff was awarded an Emerson Foundation Grant to conduct an independent summer research project on representations of place in ethnographic film.

Write a Letter to The Editor.

Receive Daily Alerts

Subscribe to receive daily breaking news and legislative developments sent to your inbox.

  • This field is for validation purposes and should be left unchanged.

Most Popular

Hawaii Department of Health Employee Alleges Waste and Misconduct 

Drone Warfare Whistleblower Awaits Sentencing Under Espionage Act

Alphabet Shareholder Requests Stronger Whistleblower Protections for Google Employees

FCA Attorney Explains Landmark FCA Decision: 6th Circuit Jurisprudence Provides a Roadmap

Record Year Continues: SEC Whistleblower Nets $2.5 Million Award

Jane Norberg, Head of SEC Whistleblower Office, to Step Down After Highly Successful Tenure

Whistleblower Poll

Whistleblower Poll
Whistleblower Poll

Exclusive Marist Poll: Overwhelming Public Support Among Likely Voters For Increased Whistleblower Protections

byGeoff Schweller
October 6, 2020

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

STAY INFORMED. Subscribe to receive breaking whistleblower updates.

  • This field is for validation purposes and should be left unchanged.
Whistleblower Network News

Whistleblower Network News is an independent online newspaper providing our readers with up-to-date information on whistleblowing. Our goal is to be the best source of information on important qui tam, anti-corruption, compliance, and whistleblower law developments. 

Submit an Article
  • About
  • Advertise
  • Privacy Policy
  • Terms of Use
  • Careers
  • Contact
  • Donate

Copyright © 2021, Whistleblower Network News. All Rights Reserved.

This Newspaper/Web Site is made available by the publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this website, you understand that there is no attorney-client relationship between you and the Newspaper/Web Site publisher. The Newspaper/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

No Result
View All Result
  • Exclusives
  • Government
    • False Claims-Qui Tam
    • Federal Employees
    • Intelligence
  • Corporate
    • CFTC & Commodities
    • Dodd-Frank
    • IRS & Tax
    • SEC & Securities
  • Features
  • Legislation
  • International
    • Foreign Corruption
    • Tax Evasion
  • Rewards
  • Whistleblower of the Week
  • Environment
  • Opinion
    • Editorial
    • Jane Turner
    • Mark Worth
  • Employment
    • Sarbanes-Oxley Whistleblowers
    • Retaliation
    • OSHA
  • Media
    • Podcasts
    • Videos
    • Webinars
  • Whistleblower Poll
  • National Whistleblower Day
  • Whistleblower Resources
    • Frequently Asked Questions
    • The New Whistleblowers Handbook

Copyright © 2020, Whistleblower Network News. All Rights Reserved.

Become a Whistleblower Network News Subscriber

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Subscribe to WNN

Retrieve your password

Please enter your username or email address to reset your password.

Subscribe to WNN

Add New Playlist

Go to mobile version