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Government Offers Substantial Rewards to Corporate Whistleblowers
As an incentive to those with information regarding securities fraud and corporate bribery to come forward, the government provides significant monetary rewards to corporate whistleblowers.
March 17, 2011 /Banking and Financial PR News/ -- The federal government is fully committed to ensuring that corporations adhere to established laws, particularly when it comes to securities law and regulations. However, the government is not always in the best position to know when companies are trying to circumvent the rules.
Employees are much more familiar with the operations of a company, and therefore much more likely to detect anomalies or attempts to circumvent relevant regulations. Thus, as an incentive to those with information regarding securities fraud and corporate bribery to come forward, the government provides significant monetary rewards to corporate whistleblowers.
Under the new Dodd-Frank Wall Street Reform and Consumer Protection law passed in 2010, the Securities and Exchange Commission (SEC) must pay awards to those who provide credible information leading to sanctions of more than $1 million.
Although the amount of the award is at the discretion of the SEC, these awards range from 10 to 30 percent of the amount recouped. In determining how much to award, the SEC considers factors such as the quality and relevance of the information provided, and the whistleblower's degree of assistance.
In addition to providing financial compensation, though, the Dodd-Frank Act protects those who come forward with information. Under the whistleblower protections, a company cannot discharge, demote, threaten, suspend or otherwise discriminate in employment matters against someone who reports these issues. The employee is protected regardless of whether the SEC ultimately pursues an enforcement action against the company.
Whistleblowers serve and protect the interests of the public. If you have information regarding corporate bribery or securities violations, do not hesitate to report this information to the SEC. By providing this information, you help to ensure the integrity of our financial systems. However, when you provide this valuable information, you should also ensure that you receive fair compensation for your efforts and that you are not punished at work for doing so. For those reasons, it may be wise to speak with a knowledgeable attorney before contacting the SEC.
Article provided by The McClellan Law Firm
Visit us at www.mcclellanlaw.com
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