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Ethically Speaking

Ethically Speaking

Whistle-blowing Five Years After "Informant Awards"


Following an Institute for Enterprise Ethics round table, Dan Sweeney, Director of the Institute for Enterprise Ethics, was joined by Kevin O'Brien, JD, LL to add context to the discussion and share his insights on Dodd-Frank and other legislation's impact on corporate "whistle-blowing."

During the podcast, O'Brien highlighted the recent whistle-blowing case that resulted in Monsanto settling with the federal government for $80 million.
Episode #15

TakeAWAYS

TakeAWAYS
Following this and each subsequent IEE Roundtable discussion, the Institute will publish TakeAWAYS from the event's speaker and participants.


Click here for the TakeAWAYS from Whistle-blowing Five Years After "Informant Awards"



$80 Million Monsanto Settlement

Wistle Blowing | Monsanto

As a result of an SEC investigation, prompted by an employee "whistleblowing," Monsanto agreed to pay $80 million dollars to the U.S. Government. The case centered around a rebate program for it's top-selling herbicide, RoundUp, that did not follow Generally Accepted Accounting Principals (GAAP.)

While the company booked significant revenues as a result of the rebate program, it failed to account for the costs of that program in its accounting for the appropriate period. This resulted in misstated earnings and profits in the financial statements.

The error was initially brought to the attention of Monsanto by a CPA in the accounting department, but after the company did not self-report to the SEC within the 120 days mandated by regulations in the Dodd-Frank Act, the employee contacted the SEC to report the violation.



For more insight into the case:

Click here to read the article on the SEC website.

Click here to read the article in the New York Times.

Click here to read the article in AccountingToday.
 
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