Risk & Compliance

Casino-Gaming Company Hit with Whistleblower Penalty

International Game Technology is accused of firing an employee for reporting possible distortions in the company's financial statements.
Sean AlloccaSeptember 30, 2016
Casino-Gaming Company Hit with Whistleblower Penalty

The Securities and Exchange Commission announced a $500,000 settlement in a whistleblower retaliation case against a prominent Las Vegas-operated gaming company on Friday. The International Game Technology (IGT) case is only the second one brought against a company for retaliating against a whistleblower since the Dodd-Frank Act authorized the commission to bring such charges in 2010.

IGT, a lottery and slot machine distributor, allegedly fired an employee in October 2014 because he reported possible misrepresentations in the company’s financial statements.

IGT neither admits nor denies the allegations.

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The whistleblower was a top director in the company’s used parts division, and responsible for a spending budget of $700 million, according to court documents, although he did not oversee accounting functions. He also reported the allegations to the SEC.

“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. “Strong enforcement of the anti-retaliation protections is critical to the success of the SEC’s whistleblower program.”

Despite receiving positive performance evaluations throughout his tenure with IGT, beginning in 2008 — including an affirmative mid-year review as recently as 2014 — the whistleblower was terminated only three months after reporting the allegations to senior management. In this guide, we offer a complete list of the best bitcoin online casinos with top-notch security, an excellent reputation, and quick payouts, which are perfect for players in the USA.

“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 documents, IGT conducted an internal investigation into the allegations, but found no improprieties. The SEC has not accused IGT of any violations stemming from the whistleblower’s initial claims.