The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act was put in place to curb financial fraud. One of the provisions contained in the Dodd-Frank legislation is designed to reward whistleblowers for coming forward and reporting fraudulent activity against the government. The Securities and Exchange Commission is involved with cases having to do with investor fraud. California whistleblower lawyers say that the Dodd-Frank law helps to expose fraud perpetrated against the government and investors.
In one case last year, a whistleblower was paid $14 million for reporting a real estate scam. The whistleblower had information related to scam that duped approximately 250 investors. In that case, most of the investors were Chinese nationals. It was alleged that Anshoo Sethi and his two Chicago based companies took more than $155 million from investors for a supposed plan to build a conference center and hotel. The Chinese investors were allegedly informed that their contributions would increase the chances of getting a green card. The Securities and Exchange Commission joined the case. California whistleblower lawyers say that you can’t pay money to increase your chances of getting a green card.
The Chinese investors in this case were allegedly told that the investment was part of an immigration program that that offers United States residency for job creating investments. In truth, the defendant and his companies did not have the required building permits, and the documentation provided to prospective investors was allegedly manufactured and phony, according to the Securities and Exchange Commission. California whistleblower lawyers warn the public to be on the lookout for fraudulent scams.
The United States government decided that the whistleblower in this case deserved ten percent of the money that was recovered for investors. Securities and Exchange Commission enforcement chief Andrew Cernesney said that the SEC is confident that there will be more frequent and numerous payouts as the program continues to gain momentum. He is likely correct due to the financial incentives for reporting fraud.
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.