One of the pots of gold at the end of the corporate whistleblower rainbow has vanished for former Vanguard Group tax lawyer David Danon. New York State Supreme Court Justice Joan Madden decided last week that he violated ethics rules by turning in his complaint while he was still an employee with access to confidential information, according to a Philly.com report.
Danon “‘may not proceed with, nor profit from, any disclosure of confidential information’ connected to the case,” the article explained, though state tax authorities may still pursue claims for recovery of any unpaid state taxes due.
The ruling, however, does not establish whether or not Vanguard’s practice of providing services to its funds at cost rather than market value illegally avoided hundreds of millions of dollars.
A decision on the substance of Danon’s accusations “would require an intense factual inquiry that cannot be determined based on the record before the court,” Madden wrote.
Danon also pursued actions with the IRS and SEC, neither of which has ruled on his allegations nor disqualified him from reaping whistleblower rewards.
Read more about Madden’s ruling on Philly.com here, and check out previous VISTA Today coverage of the Vanguard whistleblower saga here.
