Dodd-Frank Whistleblowers

NWC is continuing to protect and help Dodd-Frank Whistleblowers. Get the latest news, cases, and stories concerning Dodd-Frank Whistleblowers.

Securities and Exchange Commission

In announcing its first two whistleblower awards of the year, the Securities and Exchange Commission notes:

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.
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The Commodity Futures Trading Commission (CFTC) financial whistleblower program has been busy, most lately announcing a $2 million award to “two model whistleblowers who provided the agency with significant information that prompted the CFTC to open an investigation….The multiple interviews and numerous documents the whistleblowers provided were highly informative and formed the basis of the CFTC’s investigation.”
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SEC Whistleblower RewardsOn Wednesday, December 12, 2018, National Whistleblower Center (NWC) Executive Director Stephen M. Kohn made a formal presentation to representatives from the U.S. Securities and Exchange Commission (“SEC”) opposing the proposed SEC rule  limiting awards in major fraud cases.  Kohn was joined by NWC Policy Counsel Maya Efrati and NWC Legal Fellow Sarah Khan. The packed room included SEC leadership from the Office of General Counsel, the SEC Whistleblower Office and the Office of the Chairman of the Commission. The meeting lasted for over one hour.
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International-Map-of-SEC-Crimes-Reported-foreign-corrupt-practice-act
International tips are crucial to the SEC’s law enforcement capabilities. From 2011 to 2017, the SEC received a total of 2,655 whistleblowers from 113 countries. This map shows the countries as well as the frequency of those tips.

Washington, D.C. August 30, 2018. Today, the National Whistleblower Center (“NWC”) released a report analyzing data from Foreign Corrupt Practice Act (“FCPA”) cases since the law was passed in 1977, including several cases decided in 2018.

The Foreign Corrupt Practices Act is one of the most important whistleblower laws, especially for foreign nationals and for combatting corruption and bribery occurring on foreign soil. The FCPA prohibits companies issuing stock in the U.S. – and their subsidiaries – from bribing foreign officials to win contracts and other business.
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sec-building-headquartersThe rewards for SEC whistleblower can be potentially limited for a successful qui tam lawsuit. The SEC is proposing controversial amendments to its whistleblower program. Under current directives, a whistleblower who provides information that leads to an SEC enforcement action receives 10%-30% of the recovery by the agency. This monetary provision incentivizes potential whistleblowers to disclose rather than remain silent.

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people-walking-inside-buildingToday, we expect Wall Street to be as much a part of the community as Main Street. For corporations with social responsibility commitments and investor groups with social responsibility mandates, whistleblowers are a crucial force for compliance. Whistleblowers ensure that businesses play by the rules, including those that they’ve set for themselves, as part of their social responsibility commitments. As the number of whistleblower claims rise, both in quality and scope, the potential impact of these cases on socially responsible investing, and on companies committed to and impacted by such frameworks, needs to be placed in the spotlight.

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