DODD-FRANK ACT’S MAMMOTH WHISTLEBLOWER INCENTIVES

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), whistleblowers who report violations of securities law, commodities law or the Foreign Corrupt Practices Act to the attention of the right government authorities-the SEC, DOJ or Commodities Futures Trading Commission, are entitled to between 20% to 30% of the Government’s recovery in excess of $1 million. The Securities and Exchange Commission (SEC) settled three securities cases in July 2010 worth $550 million, $100 milion and $75 million. Last year the SEC and DOJ settled three cases involving claims of corruption under the Foreign Corrupt Practices Act (FCPA) for $450 million, $300 million and $200 million. The whistleblower awards apply only to original information derived from the whistleblower’s independent knowledhe or analysis that cannot be known to the relevant government agency from any other source. The information can apply to any manner of securities violation, including insider trading, fradulent reporting, irregularities in commodities trading and violations like payment of bribes to foreign officials. Jeffrey Newman represents whistleblowers under the Dodd Frank Act AND other laws nationwide. He can be reached at Jeff@JeffNewmanLaw.com or 617-823-3217.