The Securities and Exchange Commission Whistleblower program is nearly two years old. Key features of the whistleblower program are confidentiality, legal protection, and a reward system for whistleblowers. Whistleblower and securities attorneys think that the whistleblower program is off to a good start.
A former Internal Revenue Service Accountant was the first to receive a whistleblower reward under the new program. She chose to step forward and be identified but according to the protections in the Frank –Dodd Act, she could have remained anonymous if she had wanted to. She helped to prevent a multi-million dollar fraud by stepping forward. Whistleblower and securities attorneys say that protections included in the whistleblower program have been helpful in getting people who have knowledge of fraud against the government to step forward.
In the first year of the whistleblower program there were more than 3,000 tips given to the Securities and Exchange Commission. That shows that whistleblowers are confident in being able to come forward. Prior to the new whistleblower program, the Securities and Exchange Commission was only able to respond to tips related to insider trading. Now, all securities violations are able to be reported to the Securities and Exchange Commission. In the old system, rewards could not exceed more than ten percent of the money recovered. Now whistleblowers can receive up to thirty percent of any recovery that is the result of their tips. Whistleblower and securities attorneys say that the reward system encourages those who have information about the government being defrauded to step forward.
Evans Law Firm, Inc. handles whistleblower/false claims, consumer fraud class actions, insurance and banking fraud, consumer product liability, elder abuse, and personal injury cases. If you think that you have witnessed or are the victim of financial fraud by an insurance company, bank or individual then, contact Evans Law Firm, Inc. at (415) 441-8669 for a free and confidential consultation, or email firstname.lastname@example.org.