Dodd-Frank Final Whistleblower Provisions Take Effect August 12-Companies Get Ready!

The Securities and Exchange Commission (SEC) adopted final rules to implement the whistleblower provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act and they will take effect August 12. The rules provide incentives for whistleblowers who will be entitled to receive between 10 and 30 percent of the total monetary sanctions recovered by the government. Section 922 of the Dodd-Frank Act says that the sanctions must exceed $1 million for the whistleblower to collect any moneys and there are stiff provisions against retaliation against whistleblowers by the employers. The information must be: 1) original; 2) lead to successful enforcement action with sanctions exceeding one million dollars and 3) the information must derive from the insididuals “independent knowledge” and not derived from publicly available information. The knowledge can be obtained from a person’s experience, observations or communication with others. For more information contact attorney Newman.