Dodd Frank Whistleblower Protections and Rewards
What is the Dodd-Frank Act?
The Dodd-Frank Act is a major Wall Street reform law that was signed into law on July 21, 2010. If you are a Dodd Frank whistleblower, keep reading to learn how to proceed with your case.
Does the Dodd-Frank Act contain whistleblower protections for corporate employees?
Yes. The Dodd Frank Act included the following major reforms for corporate whistleblowers:
- The SEC Whistleblower Reward and Protection law
- The Foreign Corrupt Practices Act whistleblower reward law
- The Commodity Exchange Act whistleblower reward and protection law
- Major improvements for in the Sarbanes-Oxley Act whistleblower protection law
- New Dodd Frank whistleblower anti-retaliation protections under the consumer fraud laws
- Clarification of the Statute of Limitations in False Claims Act retaliation cases.
What were the Major Reforms for securities and commodities whistleblowers in the Dodd-Frank Act?
The most significant breakthrough in the Dodd-Frank Act concerned securities and commodities frauds. Trading in securities and commodities covers most of the publicly traded companies in the entire world. Thus, under the Dodd-Frank Act reforms, most of the worldwide publicly traded economy is now covered under a whistleblower reward program, and for those employees within the United States, a strong anti-retaliation law also provides protection for employees in the publicly traded economy.
For whistleblowers under the Securities and Exchange Act, the Commodity Exchange Act and the Foreign Corrupt Practices Act, the Dodd-Frank Act created enhanced provisions to protect the confidentiality of whistleblowers, and also permits whistleblowers to anonymously file reward claims.
Moreover, because the Foreign Corrupt Practices Act is incorporated into the SEC’s securities regulatory scheme, the international whistleblowers who provide information on foreign bribery covered under the FCPA are also entitled to a financial reward.
Finally, both the Securities and Exchange Commission and the Commodity Futures Trading Commission were required to pay qualified whistleblowers a reward of between 10-30% of all proceeds collected based on the whistleblowers original information. If a reward was denied, the whistleblower could challenge the denial in court.
What were the other whistleblower reforms contained in the Dodd-Frank Act?
In addition to creating the strong reward provisions for securities and commodity fraud cases, the Dodd-Frank Act also created new whistleblower protections covering consumer frauds. Specifically, Dodd Frank whistleblowers would be protected from retaliation if they reported violations of law to the newly created Consumer Financial Protection Board, or reported violation of consumer protection laws to their supervisors.
Additionally, the Sarbanes-Oxley Act was amended in the following manner:
- The statute of limitations was increased to 180-days;
- Subsidiaries of publicly traded companies were explicitly covered under the SOX
- Mandatory arbitration was prohibited
- The right to a jury trial was made explicit.
Finally, the statute of limitations in False Claims Act retaliation cases was set at 3-years.
Where can I obtain more information on the Dodd-Frank Act?
The New Whistleblower’s Handbook contains extensive information on the Dodd-Frank Act protections. Rule 1 covers confidentiality and anonymity; Rule – covers the reward provisions of the Securities and Commodity Exchange Acts, Rule – covers the reward provisions of the Foreign Corrupt Practices Act, and information on retaliation is contained throughout the Handbook.
The Handbook can be purchased here. All proceeds for these sales are donated to the National Whistleblower Center.
For a tax deductible donation of $50.00 or more, you can obtain a free copy of the Handbook from the National Whistleblower Center.
Where can I obtain legal assistance in filing a Dodd-Frank Act case?
Please fill out one of the law firm’s intake forms describing your case.
What are the limits of this FAQ? Is there a disclaimer concerning the information presented here?
Whistleblower laws are complex. There are several qui tam or reward laws that can result in a whistleblower obtaining a multi-million-dollar judgment. Each of these laws has specific filing requirements. Additionally, there are over 50 different federal anti-retaliation laws designed to protect whistleblowers from discrimination. Again, each of these laws has various lengths of statutes of limitation, filing procedures, and definition of a protected disclosure.
These FAQs give whistleblowers an overview of significant whistleblower qui tam, reward, or anti-retaliation laws. They are not comprehensive. If you believe you may have a whistleblower case, you should contact an attorney and obtain specific advice based on the facts of your case. You cannot rely only on the information in this FAQ to determine whether or not you have a valid claim.
A critical resource for those thinking of blowing the whistle is The New Whistleblower’s Handbook: A Step-by-Step Guide to Doing What’s Right and Protecting Yourself (Lyons Press 2017). The Handbook contains a detailed discussion on all major whistleblower laws and has extensive citations to legal cases and statutes the protect whistleblowers. It is an invaluable resource.
Because of the complexity of the whistleblower laws, we disclaim all liability in respect to actions taken or not taken based on the contents of this FAQ. The FAQ is a summary guide to understanding your rights. You should contact an attorney with expertise in whistleblowing before you make a disclosure. You must know your rights before you “blow the whistle,” so you can ensure that your conduct will be protected.
Can the whistleblower attorneys working at Kohn, Kohn and Colapinto help me?
The whistleblower law firm of Kohn, Kohn and Colapinto has a straightforward intake process. It is available here. Every intake is confidential, and the information provided protected under the attorney-client privilege. A senior partner at Kohn, Kohn and Colapinto reads each intake submission.
The intake process is free of charge.
Unfortunately, KKC receives many more requests for assistance then it can handle and must turn away many qualified whistleblowers. If KKC cannot represent you, you still may have a solid case.
If KKC believes you may have a case with which it can help you, you will receive a follow-up call or email to obtain more information and determine whether or not our firm can represent you. Until you have a signed written agreement with the firm, we are not your attorneys (although all of the information you provide to us is privileged and confidential). Almost all of our cases are on a contingency fee basis.