Securities Arbitration Lawyers BlogWhere Are the Whistleblower Office Awards?
Are enough funds being allocated to stop individuals who are preying on US consumers?
In 2010, in response to the economic and financial crisis of 2008, the Dodd-Frank Act was put into place to pay individuals who provided original information or materials that led to enforcement action. Whistleblower offices were opened, giving the strong message to all US companies that if they put into practice business and financial models that prey on the consumer, they would be held accountable.
Significant funds were given to both the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC) to create whistleblower offices and distribute awards to whistleblowers that supplied usable and legitimate information. Eligible whistleblowers would be paid between 10-30% of the sanctions collected as a result of the enforcement to which their information led.