Business Crimes Hotline

On Sept. 29, 2016, the Securities and Exchange Commission (SEC) announced that International Game Technology (IGT), a casino gaming design and production company, had agreed to pay a $500,000 civil monetary penalty to settle charges that it had unlawfully terminated an employee whistleblower. The matter is the first stand-alone whistleblower retaliation case resolved by the SEC pursuant to Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act's whistleblower protection provision, which grants the SEC authority to bring enforcement actions against companies that retaliate against whistleblowers. See generally Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities and Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order in the Matter of International Game Technology (Sept. 29, 2016).

According to the SEC, in 2013, the unnamed IGT whistleblower discovered that the company had repeatedly inflated the costs of one of its business segments in accounting statements. The whistleblower reported the problem to his supervisor and to IGT senior management on several occasions in late 2013 and early 2014. The whistleblower also later notified the SEC of his findings. The company opened an internal investigation into the alleged accounting inconsistencies, but ultimately concluded that the whistleblower's claims were unsubstantiated.