It’s been 15 years since the Dodd-Frank Act reshaped financial regulation in the wake of the 2008 financial crisis. Among its most enduring legacies are whistleblower protections that continue to safeguard those who speak up about fraud and misconduct.
On a recent episode of the Bite-Sized Business Law podcast, Dave Jochnowitz, Partner at Outten & Golden and Co-Chair of the firm’s Whistleblower and Retaliation Practice Group, sat down with host Amy Martella, Executive Director of the Corporate Law Center at Fordham University School of Law, to talk about the history of U.S. whistleblower law, today’s enforcement landscape, and the future of whistleblowing.
Listen below. This episode is also available on Apple Podcasts, Spotify, and Amazon Music.
Whistleblower laws have deep roots, going back to medieval England and the pre-revolutionary United States. Over time, statutes like the False Claims Act created a framework for paying whistleblower rewards, and Sarbanes-Oxley expanded whistleblower protections for people in finance. The Dodd-Frank Act combined these ideas, creating the SEC Whistleblower Program in 2011. This program introduced:
- Anonymity protections, allowing whistleblowers’ tips to be submitted to the SEC confidentially through counsel.
- Financial rewards of 10-30% of recoveries in successful enforcement actions with monetary sanctions over $1 million.
- Robust anti-retaliation protections, making it safe for whistleblowers to come forward.
These legal protections are “completely bipartisan,” Dave said, noting that lawmakers on both sides of the political aisle have co-sponsored legislation seeking to strengthen the SEC Whistleblower Program. “Everybody except those people who are committing fraud tend to be in favor of stopping fraud,” he added.
Whistleblowers emerge from industries as diverse as finance, tech, healthcare, and government contracting. While some are employees, others are harmed investors or community members. Most first try to address issues internally before turning to regulators and are often motivated by integrity rather than financial reward.
While courts continue to test the limits of whistleblower statutes, and emerging issues like AI-assisted fraud are reshaping the landscape, whistleblower law remains an impactful field that protects individuals and levels the playing field for harmed investors, all while advancing the public good. As Dave emphasized, whistleblowers today have the tools and legal safeguards to report safely, anonymously, earning significant financial rewards.
Outten & Golden is proud to stand at the forefront of protecting and empowering whistleblowers. Learn more about our SEC Whistleblower Practice.
