Not everything illegal will involve brawl and weapons. Some will involve legal violations, fraud, and corruption. That is why on 21st July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act were put into place. The Act contains whistleblower provisions that increase awards and protections to individuals assisting the Securities and Exchange Commission in enforcing the securities laws and regulations. Whistleblowers are people who either alone or jointly with others, gives information to the SEC relating to the violation of the securities laws, that has happened, ongoing, or about to happen.
Bounties and Increased Eligibility Whistleblower are now available for securities law violations by both private and public companies for any judicial or administrative action brought by the SEC under the securities laws where the resulting monetary sanctions exceed $1,000,000. Whistleblowers are entitled to receive bounties of a minimum of 10% and a maximum of 30%. The Whistleblower’s Act establishes new bounties and protections for whistleblowers who report violations of the securities laws which could happen in government offices, formal organizations, and corporations. It is essential for them to report such illegal activities for the purpose of punishing the people who do illegal business, promoting honesty, and preventing public danger. Though, it is not easy to capture the white collar criminals who could have performed the act.
People would have qualms in giving information as they would fear job loss, discrimination, or retaliation. The whistleblowers Act prevent these things by setting up laws governing and protecting them. These encourage people to submit information anonymously, and it helps to minimize the potential for career harm thus helping the insiders who have access to critical information come out. For the whistleblower that opts to give out information anonymously, the Act requires him to obtain counsel, who can submit the information on the whistleblower’s behalf.
Dodd-Frank provides significant protections to whistleblowers against retaliation. Specifically, the employer may not demote, discharge, threaten, suspend or in any manner discriminate against a whistleblower for a legal reporting. In fact, any event that an employer retaliates against a whistleblower, the Act provides a substantial relief like double payback, reinstatement, and proper compensation for the related litigation cost and reasonable attorneys’ fees.
Indeed the work of the SEC Whistleblower lawyer is remarkable and beneficial to all companies and the world as a whole. It reduces the fraud rates by making sure that ethics and dignity are maintained in all spheres of the economy. Hence, the establishment of the Act and the huge emphasis on their protection is recommendable.