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.

  1. 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.
  2. 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.