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Dodd-Frank Act 5 articles

Mortgage-industry whistleblowers protected only by general laws

The Department of Labor’s Occupational Safety and Health Administration (OSHA) enforces more than 20  anti-retaliation whistleblower statutes spanning several different industries, yet mortgage professionals who speak out against fraud and other misconduct in their industry are not shielded by industry-specific whistleblower laws that so many other professionals enjoy. According to the National Mortgage News, a mortgage industry whistleblower law “would fit nicely with the many others protecting employees from the nuclear industry to Wall Street.” But until such a law is passed, mortgage professionals must rely on broader, generic whistleblower laws if they want to make a stand against fraud. ... Read More

U.S. Commodity Futures Trading Commission resolves its first whistleblower case

A whistleblower who provided tips that led to the first-ever recovery by the U.S. Commodity Futures Trading Commission (CFTC) since its two-year-old whistleblower program was created will receive $240,000. On Tuesday CFTC Chairman Mark Wetjen said that the whistleblower provided valuable information about violations of the Commodity Exchange Act. The whistleblower’s identity has not been disclosed in compliance with regulations that require confidentiality to protect the whistleblower from retaliation. “I am pleased to announce this first award, which illustrates that the CFTC’s Whistleblower Program is a valuable resource for the American public. Information received under the Whistleblower Program helps the agency ... Read More

Internal whistleblowers protected by Dodd-Frank, Massachusetts federal court rules

A federal judge in Massachusetts has ruled that whistleblowers who report fraud and other wrongdoing within their company are protected under the 2010 Dodd-Frank Act, adding to a growing list of U.S. District Court judges who have made similar rulings. The pro-whistleblower rulings contradict the interpretation of a circuit court ruling earlier this year. According to the Wall Street Journal, the Massachusetts District Court judge issued an opinion Wednesday that “rejected the argument that Richard Ellington, a former employee of New England Investment and Retirement Group Inc., was ineligible for protection from retaliation under Dodd-Frank because he did not report ... Read More

Commodity Futures regulators urge judge to protect whistleblower’s identity after leak

Lawyers for the Commodity Futures Trading Commission (CFTC) are urging a judge to intervene in its whistleblower lawsuit against London-based Arcadia Petroleum and its affiliates after they accidentally failed to conceal the name of the informant’s lawyer in court documents. According to the Financial Times, the CFTC’s lawyers fear the error, which allowed the defense to identify and subpoena the whistleblower’s lawyer, could jeopardize the agency’s whistleblower program by scaring potential, future informants away. The CFTC’s whistleblower program has become one of the agency’s best weapons in the fight against commodities fraud since it was created by the Dodd-Frank Act ... Read More

SEC awards whistleblower $14 million for exposing financial fraud

A whistleblower who provided information to the U.S. Securities and Exchange Commission (SEC) that helped federal regulators recover millions of dollars in investor funds was awarded $14 million, the largest award made by the SEC’s whistleblower program to date. SEC officials said that the whistleblower, who wants to remain anonymous in media reports, provided original information and assistance that allowed the agency to investigate a case of financial fraud more quickly than otherwise would have been possible. “Less than six months after receiving the whistleblower’s tip, the SEC was able to bring an enforcement action against the perpetrators and secure ... Read More