Financial Laws that Authorize Rewards to Whistleblowers

Financial Laws that Authorize Rewards to Whistleblowers

In addition to the False Claims Act and the Internal Revenue Code, these addition laws authorize whistleblowers a percentage of any recovery provided the disclosure requirements and other formalities are met. Our experienced California whistleblower lawyers understand those requirements and formalities.

  • The Securities Exchange Act. Whistleblowers can receive 10-30% of any recovery for disclosing violations of the Securities Exchange Act provided the disclosures lead to a recovery of $1 million or more for monetary sanctions. The claimant must comply with specific rules established by the SEC. These rules can be found in the Code of Federal Regulation. 17 CFR Sec. 240 and Sec. 249. The Securities Exchange Act regulates the trading of stocks, bonds, and debentures. It was enacted in 1934 and helps to insure fairness and honesty in America’s financial markets.
  • The Commodity Exchange Act. Like the Securities Exchange Act, whistleblower awards are paid for recoveries of $1 million or more. The percentage awarded will range from 10-30% depending on whether the government intervenes, the value of the disclosure, and other factors. The Act governs the Commodity Futures Trading Commission (CFTC). Claims must comply with 17 CFR part 165. The Act was passed in 1936. It regulates commodities and futures trading both of which must be traded on organized exchanges. The CFTC was created in 1974. A related agency, the National Futures Association, was created by the CFTC in 1982.
  • The Financial Institution Reform, Recovery, and Enforcement Act. Claimants can be rewarded for disclosures of fraud that are committed by or committed to banks and other institutions that are federally insured by the Federal Deposit Insurance Corporation (FDIC). Payments are made at the discretion of the federal Attorney General. The FDIC was created in 1933 in response to the Great Depression to restore trust in the federal banking system by insuring deposits made to savings institutions and commercial banks.

Financial whistleblower cases are very complex. The fraud and violations usually involve complex schemes. Often, our experienced whistleblower lawyers work with financial experts who can analyze and testify about the fraud. For help with any financial disclosure that may result in a whistleblower award, call Stephen Danz & Associates. We have been aggressively fighting for whistleblowers and helping them get a percentage of a recovery for several decades. We’ll guide you through each phase your claim. To speak with a skilled California whistleblower lawyer today, call (877)789-9707. Se habla espanol.