How The Dodd Frank Act Concerns Us All

Introduced as recently as July 2011 by President Obama, the Dodd-Frank Wall Street Reform and Consumer Protection Act (otherwise referred to as the Dodd Frank Act) was as a direct response to the financial crisis which very nearly brought the US, and indeed the global economy, to its knees back in 2008. The Act was named after Senator Chris Dodd and Republican Barney Frank who presented the idea of placing the government in firm control of the regulation of the financial institutions, directly to the President. It is believed that tighter control will ensure that the government has their finger on the pulse and as a result they will be able to take any adverse action to avoid any further financial crashes. This is one of the most comprehensive acts to be passed since the great depression of the 1930's and includes some whistleblower laws with mega financial incentives.

Qui Tam Whistleblower Laws

President Obama believed that for things to improve there had to be some form of monitoring from the inside. Prior to the banking collapse the financial institutions were pretty much a law unto themselves and were likened to 'secret societies'. For the Dodd Frank Act to work, the President needed everyone to be on board and for the government to have some form of internal reporting, and as a result the Qui Tam Whistleblower Laws were introduced.

Under the legislation of the Qui Tam laws, any individual can file a lawsuit on behalf of the government and, if it is successfully proven, they are entitled to a share of the recovery as a reward. The Dodd Frank Act whistle blower laws are a kind of "do tell" policy and the reward up for grabs is between 10-30% of the money (provided that this is over $1 million). You don't need to be the greatest of mathematicians to work out that this could equate to a very large sum of money. One part of the law that is proving very controversial is that the potential whistleblower is allowed to bypass the usual form of complaints procedures within their organisation, and can go direct to the Securities and Exchange Commission (SEC) to voice their concerns.

The simplest way of knowing if you might have a case is to contact a well-versed whistleblower attorney. These cases are fairly complicated and costly, so a well-versed attorney will need to represent you.

Who is a whistleblower?

According to the Dodd Frank Act summary, a whistleblower is someone who gives the SEC information showing that governmental security statutes are being violated. This includes information relating to a violation that is about to take place as well as one that is currently happening. As long as the whistleblower has some solid evidence for their allegation, they will be protected under the normal whistleblowing regulations, which means that employers are not allowed to retaliate by means of termination, suspension, harassment, demotion, discrimination or threatening behavior, and any of these acts is illegal.

How will a whistleblower be dealt with by the company?

It goes without saying that a whistleblower who under the Dodd Frank Act has contacted the SEC or filed a lawsuit regarding goings on in their company, is going to be worried about the consequences. Naturally an experienced lawyer will be on hand to help them in this difficult time but they need be aware that the company could inform everyone that there is a whistleblower and divulge your identity or, on the other hand, they may only tell those who need to know.

Keep communications open

A company needs to take this type of allegation very seriously and keep communication channels open to the whistleblower both during and after the event, since if a whistleblower feels that he is treated differently from other employees, then under qui tam whistleblower laws, he could have grounds for recourse.

So, you can see how keeping your eyes and ears open, and having the courage to report any wrongdoings can reap huge monetary rewards under the Dodd Frank Act, but it is not a decision to be taken lightly and you should always contact an attorney for his advice and so as you know your full rights as a whistleblower.