The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was signed by President Obama on July 21, 2010 to strengthen the financial reform system. One aspect of the Act receiving heightened attention is the increased incentives for whistleblowers. First protected by the Sarbanes-Oxley Act of 2002, whistleblowers of public companies were given the right to report violations confidentially and without reprimand. What they did not receive were financial incentives and rewards. With the Dodd-Frank Act, individuals who bring a violation of securities to the attention of the Securities and Exchange Commission can receive up to 30 percent of fraud settlements over $1 million. See the attached article for existing whistleblower provisions, the whistleblower provisions of the Dodd-Frank Act, and what public companies should be considering with regard to the new provisions.
Dodd-Frank Act Promises Large Bounties for Whistleblowers