Whistleblower Incentives and Protections Under the Dodd-Frank Wall Street Reform and Consumer Protection Act
August 22, 2011
By H. Lowell Brown, a former Assistant U.S. Attorney currently practicing in corporate compliance, internal investigations, and white-collar criminal defense. Mr. Brown has authored Bribery in International Commerce based on the Foreign Corrupt Practices Act, and co-authored White Collar Crime: RICO.
This white paper analyzes two very significant provisions of the Dodd-Frank Act concerning “whistleblowers” that report violations of federal securities laws to the SEC or other law enforcement agencies.
- First, the establishment of a federal cause of action that can lead to reinstatement of lost employment, an award of up to twice the back pay, and compensation for litigation costs.
- Second, the SEC receives 10-30% of the funds collected from monetary sanctions imposed by the Commission in excess of $1M.
The white paper covers the provisions’ incentives and protections, of which the final rules were promulgated on May 25, 2011.
To read this white paper please click here.