In the aftermath of the 2008 financial crisis, the federal government has taken several steps to prevent this fraud from repeating. These regulations were primarily created by the Dodd-Frank Act, which provides a path to regulate the financial sector and prevent a future crisis.
This legislation includes a program that allows whistleblowers to report violations to the Securities and Exchange Commission (SEC). If their tip results in a prosecution or administrative action, they become eligible for a monetary award.
Let our hardworking legal team help you navigate Dodd-Frank and Lexington whistleblower claims. Schedule a consultation with one of our seasoned whistleblower attorneys today.
This act includes multiple pieces of legislation designed to reign in the financial sector. It is enforced mainly by the SEC, which investigates and prosecutes securities law violations, and the Department of Justice, which handles criminal prosecutions. It also created an oversight council, monitors the stability of large companies, and provides strict limits on speculative trading or credit default swaps.
Despite these efforts, financial fraud continues to be a problem. Given the size of the industry, the government lacks the resources to aggressively investigate every transaction. To fill the gaps, authorities rely on Dodd-Frank whistleblower claims to provide tips that may spark a viable investigation in Lexington.
This program is designed to motivate industry insiders to offer tips regarding fraud in the financial sector. To do so, the government offers rewards related to investigating bribes or other securities violations.
Only specific tips will result in a payout. To qualify, the SEC must recover a minimum of $1 million from the offender through an enforcement action. Monetary awards are not possible for more minor cases.
In addition, these tips must be given voluntarily, meaning they are not the result of a legal obligation or a request from law enforcement, the subject of an investigation, or an individual required to report wrongdoing.
A Dodd-Frank whistleblower claim in Lexington can lead to a significant financial reward, potentially recouping as much as 30 percent of the money obtained through the enforcement action. Contact an attorney for legal guidance and support throughout this process.
It is natural to fear retaliation for assisting the government, especially among individuals with lucrative jobs in the finance industry. The good news is that there are tools for protecting whistleblowers and shielding them from unfair treatment.
One of the benefits of working with a lawyer is that they may submit a tip anonymously on behalf of a whistleblower. In some cases, this can permanently shield the individual’s identity while still being eligible for compensation.
Remedies are also available when an employer engages in retaliation. If a company takes adverse action against an employee due to their collaboration with the authorities, it could be forced to compensate them. This might come in the form of reinstating them to their prior position or offering back pay.
A Lexington attorney could provide more information about a whistleblower’s protections when making a Dodd-Frank claim.
If you are considering making a report to the SEC regarding wrongdoing, discussing your options with a reliable lawyer is essential. The right legal counsel could protect you from retaliation while maximizing your chances of recovering an award.
Call today to discuss Dodd-Frank and Lexington whistleblower claims with a dedicated attorney.