RegulationCorporate GovernanceUS bank ordered to reinstate ‘whistleblowing’ CFO

US bank ordered to reinstate ‘whistleblowing’ CFO

Sarbanes-Oxley Act orders bank to reinstate finance chief

Powers brought in under Sarbanes-Oxley to protect whistleblowers have seen a
former chief financial officer of a small Virginia bank ordered back to work,
although the bank itself is trying to prevent this happening.

The bank is now supposed to reinstate Welch to his job on an interim basis,
or offer him payment or will be forced to by the federal district court.

In 2002 David Welch was sacked as CFO of Cardinal Bankshares Corp after
refusing to certify his company’s financial statements.

According to WebCPA, Welch claimed he was blocked from meeting with the audit
committee and that evidence was rigged to make him look incompetent.

The bank said it fired Welch when he refused to comply with the audit
committee’s direction to meet with its representatives without his personal
attorney, saying that an outside attorney would have violated the company’s need
for confidentiality.

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