The Dodd-Frank Wall Street Reform and Consumer Protection
With the passage of the Dodd-Frank Act in 2010, whistleblowers are now incentivized to
report securities fraud to the Securities
and Exchange Commission (SEC). Under Dodd-Frank,
whistleblowers are protected against retribution from the company
and may recover 10-30% of the fines levied against the company if
the fines exceed $1 million. Prior to this Act, few
whistleblowers would risk their livelihoods to report securities
What Happens when a Whistleblower "Blows the
When a whistleblower files a complaint with the SEC, the SEC
investigates the alleged fraud (e.g., financial statement fraud,
insider trading, violation of the Foreign Corrupt Practices Act).
In order to keep SEC investigative costs down, whistleblowers may
report to the company and the SEC at the same time. This
allows the company to investigate and disclose to the SEC. Because
securities investigations are often difficult and
resource-consuming, this allows the SEC to devote its resources
What Whistleblowers Should Expect
The Dodd-Frank Act should result in uncovering and punishing a
significant amount of fraud (and hopefully deterring future fraud).
The first payments to whistleblowers under the Act are
expected to be made soon. Reports of fraud are expected to
balloon soon after these first payments are awarded.
Reporting alone has already garnered high numbers, with over
300 reports from 37 states during the first 7 weeks after
Dodd-Frank took effect. However, the numbers should
dramatically increase once potential whistleblowers realize that
the Act's incentives actually work.
Different Types of Whistleblower Fraud
Contact Us To Learn More
We invite you to learn more from our qui tam whistleblower law
firm. For more information or to schedule a confidential
discussion about a potential whistleblower case, please fill out
the form on the right. You can also call us at (215) 875-4699.
For further reading:
Provision of the False Claims Act
Life of a Qui Tam Lawsuit and Why You Want the Government to
What is the False Claims
What is Qui Tam Law?
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