New Whistleblower Cash Award Program Adopted by the SEC
Whistleblower Claim Lawyer in Washington, DC
On May 25, 2011, federal regulators passed new rules making whistleblowers
eligible for significant cash awards. If a tipster reports corporate fraud
or misconduct to the Securities and Exchange Commission (SEC) and it leads
to penalties of more than a million dollars, the SEC will pay the whistleblower
up to 30% of the money recovered.
These new rules will take effect in July 2011, but whistleblowers who provided
information from July 2010 onward will also be eligible to receive awards.
The U.S. Chamber of Commerce and some of America's largest companies
- such as Best Buy, FedEx, Google, AT&T, and Target - contested the
new whistleblower program, which was mandated by the financial overhaul
law enacted in 2010.
Employees Encouraged to Report Fraud Internally
Despite fears that employees would be encouraged to bypass internal company
compliance programs, the new rules are designed to reward whistleblowers
who report wrongdoing to company officials first, as long as:
- Companies pass the information on to the SEC
The whistleblower provides the SEC with the information
within 120 days
Once an employee has reported potential wrongdoing to their company, the
SEC will officially designate them as a whistleblower, making them eligible
for protection and awards in the event of verdict or settlement of millions
of dollars. The passing of these new rules represents the first time that
whistleblowers are being given a financial incentive to report fraud or
misconduct to company authorities. Advocates of the new program assert
that whistleblowers can serve as an effective defense against corporate
Protection for Whistleblowers
If you have become aware of fraud or wrongdoing conducted by an individual
or company against the government, our firm's experienced attorneys
at can help you file an effective whistleblower lawsuit. You do not need
to fear reprisals if you report fraud, as the American Recovery and Reinvestment
Act includes specific provisions protecting whistleblowers from being
fired, demoted, docked pay, or discriminated against in any way.
If you suspect fraud against the government, allow our attorneys to help
you investigate the situation without compromising the case or your own
legal status. Please
contact a Washington, DC whistleblower lawyer today to schedule a free case evaluation. We serve clients in Washington,
DC, Virginia, and Maryland.