Section 922 of the Dodd-Frank Act - The Whistleblower
The Securities and Exchange Commission ("SEC") whistleblower
program created under section
922 of the Dodd-Frank Act incentivizes those with
knowledge of securities violations to "blow the whistle" on the
person or company engaging in such conduct. To initiate a suit, the
whistleblower must complete and file a Form TCR (i.e., a Tip,
Complaint or Referral Form), available on the SEC website detailing
the violations and providing evidence and facts. If the SEC
recovers money using the information the whistle blower provided,
may apply for an award and stands to recover a portion
of the money.
The Foreign Corrupt Practices Act
The anti-bribery provisions of the Foreign Corrupt Practices Act
(FCPA) make it unlawful to make a payment to a foreign official for
the purpose of obtaining or retaining business for or with, or
directing business to, any person. The statute defines
foreign official as "any officer or employee of a foreign
government or any department, agency, or instrumentality thereof,
or of a public international organization . . . ." In other
words, the FCPA includes in the definition of foreign official,"
officers and employees of government instrumentalities."
While the FCPA does not define "instrumentality," the Department of
Justice ("DOJ") and the SEC have construed "instrumentalities"
broadly. The ability of the SEC and the DOJ to enforce the FCPA
only extends to American companies and citizens who bribe foreign
The Whistleblower Program under the Dodd-Frank Act and the
Foreign Corrupt Practices Act
Because the SEC
whistleblower program under the Dodd-Frank Act offers
rewards for helping the government uncover securities
violations, including violations of the FCPA, American companies
who operate in foreign countries are coming under increased
scrutiny. American companies operating in the health care industry
are particularly at risk because many conduct business in foreign
countries with national healthcare systems that are run by the
government and operated by government employees. The DOJ and the
SEC interpret these government employees as "foreign officials"
under the FCPA. Thus, when an American company offers these
healthcare providers incentives for prescribing and ordering their
medications, they risk violating the FCPA.
New settlements and awards related to the whistleblower
program under Dodd-Frank for FCPA violations are emerging,
indicating an increased use of the Acts, and necessitating an
increased awareness of them.
Contact Us To Learn More
We invite you to learn more from our Whistleblowers,
Qui Tam & False Claims Act Practice Group. For more
information or to schedule a confidential discussion about a
potential case, please fill out the form on the right. You can
also call us at (215) 875-4699.
For further reading:
Prepare for Whistleblower Payouts under Dodd-Frank Act
SEC Whistleblower Statute: Section 922 of the Dodd-Frank
What is the
False Claims Act?
What is Qui Tam Law?
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