The Securities and Exchange Commission has settled charges against CBRE Inc., a Dallas-based commercial real estate firm, for using an employee release that violated the SEC’s whistleblower protection rule. CBRE agreed to pay a civil penalty of $375,000 as part of the settlement.
According to the SEC’s order, between 2011 and 2022, as a condition of receiving separation pay, CBRE required its employees to sign a release in which employees attested that they had not filed a complaint against CBRE with any federal agency. The SEC’s order finds that by conditioning separation pay on employees’ signing the release, CBRE took action to impede potential whistleblowers from reporting complaints to the Commission.
Once the SEC informed CBRE that it had launched an investigation, the company cooperated with the SEC and took remedial action, including revising all versions of its domestic releases and similar agreements for compliance with the whistleblower protection rule. CBRE also communicated with more than 800 of its employees who had signed the release, clarifying the protections afforded to them by the rule, including their right to communicate directly with SEC staff regarding any potential violation of federal securities laws.
“It is critical that employees are able to communicate with SEC staff about potential violations of the federal securities laws without compromising their financial interests or the confidentiality protections of the SEC’s whistleblower program,” said Eric Werner, Regional Director of the SEC’s Fort Worth Office in a statement. “We commend CBRE for its swift and far-reaching remediation and for its high level of cooperation with our staff, which is reflected in the terms of the resolution.”
Without admitting or denying the SEC’s findings, CBRE consented to cease and desist from committing or causing any violations of the whistleblower protection rule in addition to the $375,000 penalty. In determining to accept CBRE’s offer of settlement, the SEC considered CBRE’s cooperation and remedial actions. 