Under the new law, whistleblowers are afforded protections from retaliation, and they may be due significant compensation in those cases where corporations are found to be engaging in ongoing fraud. This reform effort is one of the boldest yet in the battle to end corporate fraud and Wall Street malfeasance. A person who wants to report fraud to the Securities Exchange Commission should be aware of the law's particulars before trying to rely on it.
Compensation levels for whistleblowers
When a person is able to provide original information to the SEC on current corporate fraud, that person might be able to recover anywhere between 10-percent and 30-percent of the settlement amount when the SEC pursues a claim against a wrongdoing company. The actual amount that a whistleblower will receive depends upon a number of different factors, including the quality of information and the type of wrongdoing.
Types of fraud reporting covered by Dodd-Frank
There are many federal statutes that cover all sorts of whistleblower protections. Dodd-Frank is significant because it covers three specific types of fraud reporting. People who want to claim whistleblower compensation and protection under Dodd-Frank should be sure that they reporting the three following types of fraud:
- Federal securities law violations
- Commodity Exchange Act violations
- Consumer protection violations
Whistleblowers who have evidence of those three types of wrongdoing will likely be covered under the provisions of the Dodd-Frank Act. It is important for whistleblowers to bring more than innuendo or speculation, though. Federal authorities will typically only investigate when they are presented with legitimate, tangible evidence.
How whistleblowers can take action
People who have this sort of information should be very deliberate in their methods. If you want to report corporate fraud, then there are specific processes to follow. This is especially true if you want to cash in on the payout that comes with being a protected whistleblower under Dodd-Frank. If you have questions about the process, you should contact a skilled whistleblower attorney. Acting without an attorney can be a risky proposition for whistleblowers.
Report Corporate Fraud Here. YOU MAY RECEIVE SIGNIFICANT FINANCIAL COMPENSATION.
If you work for a company that is committing fraud, you may be entitled to a significant financial reward for coming forward with your information. To find out if you have a case, complete the form on this page or call 1-800-934-2921 for a free no obligation consultation.