The financial reform package creates a new whistleblower program with potentially huge cash rewards for individuals who provide information about securities law violations to the Securities and Exchange Commission. Under the Dodd-Frank Act, the SEC will pay whistleblowers cash rewards of between 10 percent and 30 percent of any monetary sanctions in excess of $1 million that the government recovers because of whistleblowers' assistance. Some experts say even companies with robust compliance programs face dangerous waters.
Corporate Sector Sounds the Alarm Over Financial Reform's 'Bounty' System
The National Law Journal
July 20, 2010