How to Avoid Whistleblower Claims Under Dodd-Frank: Practical Tips for Financial Institutions
Lane Powell attorneys Katheryn Bradley and Laura Marquez-Garrett authored an article in Community Banker magazine’s spring 2012 issue titled “How to Avoid Whistleblower Claims Under Dodd-Frank: Practical Tips for Financial Institutions.” In the article, Bradley and Marquez-Garrett suggest tips for financial institutions on avoiding whistleblower claims under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, including creating a strong internal compliance culture and minimizing retaliation claims.
In passing the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Congress provided significant financial incentives for employees to “blow the whistle” on financial institutions regulated by the Securities and Exchange Commission (“SEC”). Under SEC rules, a whistleblower is rewarded if he or she voluntarily provides original information that leads to a successful enforcement action in federal court or before any agency so long as at least $1 million is recovered. To encourage whistleblowing on corporate non-compliance, SEC rules allow whistleblowers to recover 10 to 30 percent of what the government recovers, with some exceptions.