SEC Denies Whistleblower Award to Former Deutsche Bank Executive Over Media Disclosure

The U.S. Fixler reported concerns in 2021 that the bank did not fully integrate environmental, social, and governance factors into all investment decisions. The SEC opened an investigation based on her statements to the Wall Street Journal, leading to a $19 million fine against DWS in 2023.

Fixler had cooperated with the SEC, spending over 100 hours explaining the bank's ESG program and screening processes for public companies. She filed a formal complaint with the agency three days after the Journal published an article in August 2021 detailing her allegations.

In that article, Fixler stated that DWS misled investors about ESG integration and cited an example where Wirecard AG, a payments provider that later went bankrupt amid fraud, was included in an ESG fund.

The SEC determined that Fixler's cooperation was not voluntary because she approached the media before the agency. In its order, the SEC stated that when a claimant provides information to a media outlet and staff learn of the allegations from that outlet, the claimant has not provided information directly to the commission.

This ruling prevented Fixler from receiving 10% to 30% of the fine, which could have amounted to millions of dollars. Fixler was fired from DWS after raising these issues internally. She and her lawyer, Stephen Kohn, contend that the SEC's definition of voluntary does not align with common understanding and may deter whistleblowers from using traditional channels like the press to highlight wrongdoing.

Fixler described the decision as a warning to others considering media involvement.

The case highlights tensions between whistleblower protections and agency requirements for direct reporting. The SEC's whistleblower program, established to encourage reporting of securities violations, typically rewards those who provide original information leading to successful enforcement.

However, the emphasis on voluntary submission before public disclosure could influence how future whistleblowers approach regulators versus media outlets.