Question: In the post Dodd-Frank era, what incentives exist for whistleblowers to help bring unscrupulous financial-sector professionals to justice for illegal practices?
Answer: Money and lots of it.
SEC whistleblower attorneys can help individuals get the most reward for their information.
Whether a person is an US citizen or foreign national residing in the US, they may file a whistleblower claim themselves and are still eligible to receive compensation in exchange for their information. However, the majority of whistleblowers are much better off securing the services of experienced professionals with a past history of securing the highest reward settlements possible.
Whistleblowers that aid the SEC will receive a lucrative cash reward if government agencies are able to recover at least one million dollars as a result of the whistleblower’s actions. Best of all, whistleblowers are entitled to complete anonymity and job protection.
Recently, under the Dodd-Frank program, one whistleblower received an award of over thirty million dollars in exchange for information that lead to the exposure of one of the largest instances of SEC fraud in US history!
The Dodd-Frank Wall Street Reform and Protection Act was created in 2010 to assist the US Government in securing information used to bring unscrupulous Wall Street investment bankers, traders, and other members of the financial industry to justice after the 2008 financial crisis nearly crippled the world economy and brought about the largest financial meltdown since the collapse of the stock market in the 1920’s.
A whistleblower is entitled to receive a reward of ten to thirty percent based on the amount the agency collects as a result of the information they provide to the Securities & Exchange Commission. One caveat of concern, the amount recovered must be at least one million dollars.
A set of arcane laws are used to determine the amount of the reward provided and an experienced professional can often convince the SEC to award the maximum dollar amount for the information being provided. A few factors involved in the determination are:
- The importance of the information provided by the whistleblower and how it will impact the overall financial market.
- The level of assistance provided by the whistleblower and/or their representative.
- The “programmatic interest” of the SEC with apropos of deterring future, similar crimes from taking place.
These are just a few, brief examples of the myriad of arcana that are cited when determining the value of compensation granted for the whistleblower’s services.
For a whistleblower looking to maximize the value of their information, it becomes essential to locate a representative that has dealt with the SEC previously, and understands how to navigate the murky depths of their legal codex.