Sarbanes-Oxley Forces Bank to Hire Whistleblowing CFO
It may mark the first time under the new law.

Virginia's Cardinal Bankshares, the holding company for the Bank of Floyd in Floyd, Va. fired CFO David Welch after he raised concerns about company practices. The alleged practices included insider trading, faulty internal controls, and irregularities in financial reporting. Applying Sarbanes-Oxley's whistle-blower protections, Welch fought the dismissal. The court agreed with Welch and ordered the bank to rehire him. The court also ordered the bank to reimburse Welch all back pay as well as cover his legal expenses. A ruling has yet to be made on damages suffered by Mr. Welch.

"This is believed to be the first case where the two year old law has been used successfully," writes Richard Menta for www.bankinfosecurity.com.