New SEC Whistleblower Rules Spur Spike in Fraud Complaints

The Dodd-Frank Act passed by Congress whch increases rewards for tips by whistleblowers has lead to a significant increase in tips. Whistleblowers can obtain upto 30% of what the government recovers.SEC officialshave informed the media that a wave of high quality tips has been submitted alleging major wrongdoing in the financial world. Whistleblowers must follow the specific rules for reporting and should also be represented by counsel experienced in this area of law. Some of the recoveries are expected to reach hundreds of millions of dollars. A recovery of $600 million would yield a reward of $180 million for a whistleblower.The whistleblower lead must result in a successful SEC or CFTC enforcement. Jeffrey A. Newman represents whistleblowers under the Dodd-Frank Act.