1.What was Asadi’s theory of the case as to why he should be protected as a whis
ID: 419553 • Letter: 1
Question
1.What was Asadi’s theory of the case as to why he should be protected as a whistle-
blower under Dodd-Frank?
2. Why did the court reject the SEC’s interpretation as expressed in its regulation?
1. Asadi is not protected as a whistleblower under the Dodd-Frank Act, because
by failing to engage in external whistleblowing he fails to meet the statutory
definition of whistleblower.
2. If Asadi qualified as a whistleblower under the Dodd-Frank Act, he would have
been protected by the anti-retaliation and confidentiality provisions of the
Dodd-Frank Act.
3. Hiring a women closely associated with the Iraqi official with whom it was
negotiating a “lucrative joint venture agreement” does not violate the Foreign
Corrupt Practices Act, because it does not involve the payment of money or
property to the Iraqi official.
4. If Asadi qualified as a whistleblower under the Dodd-Frank Act, he would be
entitled to double back pay and a bounty equal to 10 to 30 percent of the
penalties imposed on GE Energy for payment of the bribe (up to $2 million)
and accounting violations (up to $25 million).
5. Asadi’s wrongful employment discharge claim against GE Energy must be
resolved by one of the International Arbitration Forums, such as ICC, LCIA, AAA
Explanation / Answer
1.Asadi was employed by GE to be managing energy service contracts between GE and other Iraqi governing bodies.He was informed that a woman has been hired to indulge in favor deriving from the minister , as was closely associated to, to negotiate on joint venture agreements. Asadi reported the same to the superiors. Shortly after being interviewed, he received negative performance feedback, he was pressurized to accept a reduced role in his region with lowered responsibilities. Thus he filed a lawsuit under the whistle blower anti relation provisions of Dodd Frank Act, asserting that he was forcibly being terminated to have reported FCPA violations.
2. The court had three reasons for rejection : The statue is not quite loud in terms of extraterritorial application to whistleblowers, conferring limited extraterritorial jurisdiction over certain enforcements, statute redirects to further public comments and whether anti fraud actions should be extended beyond US.
The court also happened to reject Asadi’s argument to extend the reach of the Dodd Franks protection Act beyond US periphery based on his reports which implicated SOX( Sabanes Oxley Act limited to US and no provision of FCPA A that protects internal alleged bribery. Thus SOX and FCPA both failed to protect Asadi based on court’s conclusions.
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