Whistleblower Lawyers Explain Federal Legislation
05/07/2012 // San Francisco, CA, USA // Whistleblower Law Firm // Jeffrey Keller // (press release)
(Whistleblower Lawyers News) – The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed by Congress to combat fraud. This new law went into effect recently, and it may dramatically impact whistleblowers and the legal and social issues that concern them.
The Dodd-Frank Wall Street Reform and Consumer Protection Act created new whistleblower programs at the Securities and Exchange Commission and at the Commodities Futures Trading Commission to investigate tips from individuals who believe that a person or an entity has violated the federal securities or commodities trading laws. By working with these whistleblowers, the federal government hopes to prevent future fraud, reduce the risk of harm to investors, and pursue legal actions against those who have already engaged in fraud.
These programs have been designed to encourage whistleblowers to come forward with allegations of large scale fraud, and the programs offer financial rewards as an incentive. The law provides that if a government sanction against a wrongdoer exceeds $1 million, an eligible whistleblower is entitled to between 10%-30% of the monetary sanction.
The law also includes a unique and powerful safeguard for whistleblowers who provide valuable tips to the SEC or CFTC about these kinds of frauds. Under the Dodd-Frank whistleblower programs, the whistleblower’s report is made anonymously through a whistleblower attorney. Because the report is confidential, the risks of retaliation against the whistleblower should be significantly reduced. Only the whistleblower and the whistleblower attorney know that he or she is the one providing the information to the SEC or CFTC.
To learn more about the Dodd-Frank Wall Street Reform and Consumer Protection Act or to discuss possible violations of the securities or commodities trading laws with an experienced whistleblower attorney, contact the whistleblower lawyers at Keller Grover LLP at 866.486.1537 or via email at [email protected]
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