- The Washington Times - Monday, April 20, 2009

WASHINGTON (AP) - The Supreme Court has rejected the appeal of a fired bank executive who blew the whistle on alleged shoddy accounting practices and wants his job back.

The justices on Monday turned down a bid by David Welch to be reinstated as chief financial officer of Cardinal Bankshares Corp. The federal appeals court in Richmond, Va., earlier ruled against Welch, saying that he failed to explain how his employer’s alleged shoddy accounting practices could be considered a violation of federal law.

A federal administrative law judge earlier ruled that Welch should be reinstated under the Sarbanes-Oxley Act, enacted in 2002 in response to corporate scandals at Enron Corp., WorldCom Inc. and other companies. The law required more stringent accounting practices and offered protection to workers who point out violations.

Since Sarbanes-Oxley was signed into law, more than 1,000 self-professed whistleblowers have come forward, and most have seen their cases rejected. Welch was the first to win his case before an administrative law judge, but that decision was reversed in June 2007 by the Department of Labor’s Administrative Review Board.

The case is Welch v. Chao, 08-836.

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