SEC Charges CBRE, Inc. with Violating Whistleblower Protection Rule

The Securities and Exchange Commission (SEC) has announced the resolution of charges against CBRE, Inc. (CBRE), a commercial real estate services and investment firm based in Dallas and a subsidiary of the publicly traded CBRE Group, Inc. The charges stem from CBRE’s use of an employee release that violated the SEC’s whistleblower protection rule.

According to the SEC’s findings, from 2011 to 2022, CBRE made it a requirement for employees receiving separation pay to sign a release in which they affirmed that they had not lodged any complaints against CBRE with any federal agency. The SEC determined that this practice by CBRE was an attempt to deter potential whistleblowers from reporting complaints to the Commission.

Upon learning of the SEC’s investigation, CBRE cooperated with the Commission’s staff and initiated substantial corrective measures. These actions included revising all versions of its domestic releases and similar agreements to ensure compliance with the whistleblower protection rule. Additionally, CBRE communicated with more than 800 employees who had signed the release, clarifying their rights under the rule, including the ability to directly contact SEC staff regarding potential violations of federal securities laws.

Eric Werner, Regional Director of the SEC’s Fort Worth Office, emphasized the importance of employees being able to report potential violations of federal securities laws to SEC staff without jeopardizing their financial interests or the confidentiality protections of the SEC’s whistleblower program. He commended CBRE for its prompt and comprehensive remediation efforts and its high level of cooperation with the SEC staff.

CBRE, while neither admitting nor denying the SEC’s findings, agreed to cease and desist from committing or causing any violations of the same whistleblower protection rule. Additionally, CBRE consented to pay a civil penalty of $375,000. The SEC took into account CBRE’s cooperation and remedial actions when accepting the settlement offer.