How The Dodd Frank Act Can Help A Whistleblower

It used to be that employees who witnessed the unlawful behavior of their employers were more than likely to “put up and shut up” for fear that rocking the boat could cost them their job and their reputation. The signing in of the Dodd Frank Act back in 2010 actually gave whistleblowers an incentive to rat on their bosses and, better still, it also offered them stronger protection against retaliation for daring to report a violation against the government.

How the Act came about

The Government, under President Obama, introduced the Dodd Frank Act as a result of the financial crisis back in 2008 which almost bought America to its knees, and it determined that they would take tighter control of regulating the financial institutions which up until that point had more or less done their own thing, and in essence became far too big for their boots. The Government realised that they couldn't possibly police every area, so the Securities Exchange Commission (SEC) was set up for this purpose. Individuals were also encouraged to act as the eyes and ears of the Government by reporting any wrong doings by their bosses directly to the SEC without having to go through the normal complaints procedure set up in place within their particular organisation. The new act not only offered them a financial incentive by awarding them with 10-30% of the total monies recovered, provided that the fraud was in excess of $1 million, but it also offered them protection.

Violations of the Dodd frank Act

To make sure that another financial crash doesn't occur, the government has made use of an old law called 'qui tam' which includes whistleblower protection. This means that should an employee be found to have reported suspected violations against the government, their employer cannot retaliate against them by:

  • Firing them from their job
  • Suspending them
  • Demoting them
  • Passing them over for promotion
  • Harassing them
  • Threatening them in any way

Should an employer do any of the above, and then the whistleblower is more than likely to have recourse against their employer and can seek damages for the stress and trauma their actions have caused, as well as a loss of earnings.

Violations of the Dodd Frank Act

There are several different types Commodity Futures Trading Commission and Securities Exchange Commission violations that are included under the Act, and these include:

  • Ponzi schemes
  • Bribing foreign representatives
  • Submitting false statements
  • Misappropriating funds
  • Insider trading
  • Manipulating stock prices
  • Failing to file reports

Deciding to blow the whistle is a huge step to take and needs careful consideration. These types of cases can be very time consuming and expensive and can in some cases alienate you from work colleagues, friends and even family. This area of the law can be quite complex and is not something that a layman should attempt on their own. If you think that your company is involved in fraudulent activity against the government, then it is imperative that you contact a qui tam attorney who can determine whether there is a case to answer and also tell you your rights.

What a qui tam lawyer can do for you

A well versed qui tam lawyer will offer a free no obligation meeting where he will listen to your findings and answer any questions that you have. In most instances, qui tam cases are more likely to succeed if the government can be persuaded to become involved and you would be well advised to seek a lawyer who has had experience in persuading government departments to join forces. Since cases by necessity have to involve sums in excess of $1 million and a whistleblower stands to receive between 10 and 30% of the total monies recovered, then the financial rewards are clearly very attractive. However, it has to be remembered that the Dodd Frank Act is not just about being rewarded it's also about making a stand against corruption and helping to make the country a better place for everyone.