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Harvey Pitt, the former chairman of the Securities and Exchange Commission, has advice for companies setting up whistleblower systems in time for this year’s Sarbanes-Oxley Act deadline: Don’t be cheap. “Trying to do this on a shoestring will eventually wind up costing companies far more than doing it right the first time,” says Pitt, whose Washington-based consulting firm, Kalorama Partners LLC, advises businesses on complying with government regulations.

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