Currently, in the United States, we are witnessing a debate regarding the role banks and financial institutions should play in our individual lives and on a national level. There are many reasons this conversation is occurring, including the financial crisis of 2008, banks that are “too big to fail,” and the subprime mortgage crisis that sent ripples through the world economy. There is a lot of room for debate about what amount of risks bank and financial institutions should be able to take, but I believe we can all agree that there is no place for fraud in the financial world. If you are aware of fraud occurring in the financial services industry, you may be able to become a Securities and Exchange Commission (SEC) whistleblower. I will describe this program in detail below.
If you are considering becoming an SEC whistleblower, or any other type of whistleblower, here in Mississippi, you will need the help of an experienced whistleblower attorney. Contact Barrett Law now at (800) 707-9577 to attain the guidance you require.
Securities and Exchange Whistleblowers
Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010 (Dodd-Frank), which overhauled finance and securities law and created an effective whistleblower program for those who are aware of fraud and other criminal conduct. I say “effective” because the Sarbanes-Oxley Act of 2002 already created a whistleblower program for this industry, but it lacked Dodd-Frank’s teeth.
There are many ways that Dodd-Frank improved upon Sarbanes-Oxley and even the False Claims Act. First, under Dodd-Frank, whistleblowers may remain anonymous up until receiving their award. This is even broader than the False Claims Act, which reveals whistleblowers’ names once a prosecution commences. But like the False Claims Act, Dodd-Frank whistleblowers may receive 10% to 30% of whatever penalty is collected as a result of a prosecution resulting in penalties of over $1 million.
Second, SEC whistleblowers are under no obligation to file their claims. This is quite different from the False Claims Act, which usually requires a suit to be filed. Instead, the whistleblower submits his or her complaint to the SEC. The SEC investigates and decides whether the agency will bring an enforcement action.
Third, if the SEC decides not to bring an enforcement action, that decision may be appealed to the appropriate United States Court of Appeals.
Like the False Claims Act, Dodd-Frank also prohibits any retaliation against the whistleblower, including investigations or other employment actions such as discipline or termination. If an employer engages in retaliation, the whistleblower can bring a separate retaliation claim in federal court. If you have been retaliated against by your employer for being a whistleblower, you can receive double back pay and all litigation costs.
What Should You Do if You are Considering an SEC Whistleblower Claim?
Are you considering filing an SEC whistleblower case regarding fraud occurring in the financial services industry? The reward for submitting a successful claim can be massive, 15 to 30% of any amount recovered, but don’t fool yourself—you will only reap this sort of award with the help of an experienced whistleblower attorney. The SEC receives thousands of potential whistleblower claims each year and only those that are reported in a way that triggers their interest are investigated. Careful pleading is key to this process and will require the help of an experienced whistleblower counsel. Contact Barrett Law now at (800) 707-9577.
Experienced whistleblower lawyer Barrett can provide you with the advice you will need to file a successful SEC whistleblower case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today.