Securities and Commodities Fraud

Dodd Frank Whistleblower Protections

The attorneys at Kohn, Kohn & Colapinto worked closely with Congress to pass the Dodd Frank Act...

and currently represent numerous Dodd-Frank whistleblowers under the confidential and “anonymous” whistleblower protection provisions of the Act.

The Dodd Frank Act is meant to preserve the integrity of the United States’ capital markets and promote financial stability by improving accountability and transparency. During the Dodd-Frank rule making process, Kohn, Kohn and Colapinto’s partners worked closely with the Securities and Exchange Commission (SEC) to create an effective whistleblower program.

Dodd Frank Whistleblower Protection Services

Kohn, Kohn & Colapinto’s partners met personally with each of the five SEC Commissioners and presented detailed reports and proposals setting forth rules that were essential to make the law work for Dodd-Frank whistleblowers as intended by Congress. The SEC adopted the key recommendations for enhancing its Whistleblower Reward Program advocated by KKC partners. The following two proposals were adopted by the SEC: establishing the right of corporate compliance officials and directors to obtain rewards; and ensuring that employees who “participated” in a fraud, but did not “plan and initiate” the fraud, could obtain rewards.

Securities Fraud includes: insider trading; “Ponzi” schemes; accounting fraud; and “front running,” which means a trader knows of a pending customer order for a security and buys or sells from his or her own account to make an unlawful profit.

The SEC has been authorized by Congress to provide monetary awards to whistleblowers that come forward with information that leads to an enforcement action in which more than $1,000,000 in sanctions is ordered. The range for awards is between 10 and 30 percent of the money collected.

Congress created the Commodity Futures Trading Commission (CFTC) as an independent agency with the mandate to regulate commodity futures and option markets in the United States. The CFTC’s mission is to protect these markets and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and option markets.

The CFTC will pay awards to whistleblowers that original information about violations of the Commodity Exchange Act that leads to an enforcement action that results in more than $1 million in monetary sanctions. The amount of a whistleblower award ranges from 10 to 30 percent of the monetary sanctions collected.

If you have knowledge of Securities or Commodities Fraud and would like to know how Kohn, Kohn & Colapinto can help you with your case, please contact us.

Stephen M. Kohn for The Guardian: Corporations cannot muzzle whistleblowers with secrecy agreements any longer

See our Dodd-Frank Whistleblower Resource page .

Kohn, Kohn & Colapinto also protects international whistleblowers who disclose violations of securities and other international laws, including the Foreign Corrupt Practices Act.

For more information, please see our Dodd Frank Act-Securities Fraud page, Dodd Frank Act-Commodities Fraud page or visit our Blog.