Financial Fraud Whistleblower Lawsuits, Securities Fraud Whistleblower Bounty Actions, SEC Whistleblower       Incentive Program Claims, Derivative Fraud Bounty       Actions, & Dodd-Frank Act Financial Fraud Whistleblower Bounty       Actions Provide Economic Incentives for Wall Street Fraud and Financial Fraud Whistleblowers      by Texas Securities, Commodity, and Financial Fraud  Whistleblower Lawyer Jason Coomer
       
Providing economic incentives to Medicare Fraud Whistleblowers, Medicaid Fraud Whistleblowers, and Defense Fraud Whistleblowers has created Billions of Dollars in recoveries to the federal government and has helped reduce health care fraud.  Recent changes in the law are now using the power of the free market and economic incentives to crack down on financial fraud including securities fraud, stimulus fraud, derivative fraud, investment fraud, and commodities fraud.  By offering large economic incentives to highly sophisticated investors and other financial fraud whistleblowers that understand complex investment fraud financial scams,  the government is hoping that private citizens with a deep understanding of and knowledge of financial fraud will help stop several types of financial fraud.
 
 SEC Securities Fraud Whistleblower Lawsuits, CFTC       Commodity Fraud Whistleblower Lawsuits, SEC Whistleblower       Incentive Program Claims, Financial Fraud Derivatives Bounty       Actions, Dodd-Frank Act Financial Fraud Whistleblower Bounty       Actions, & other Financial Fraud Claims, Actions, and Lawsuits
 
The        federal government is offering financial incentives to        securities fraud whistleblowers, commodity fraud        whistleblowers, stimulus fraud whistleblowers, and other        financial fraud whistleblowers to step up and blow the        whistle on Securities and Exchange Commission SEC        violations, Commodity Future Trading Commission CFTC        violations, derivative fraud, and other forms of        financial fraud.  Recent legislation not only        strengthens existing qui tam and whistleblower        protection laws, but also creates new whistleblower        bounties that can be collected by whistleblowers that        properly report SEC violations, financial fraud,        securities fraud, commodities fraud, and stimulus fraud. 
   
Dodd-Frank Wall Street Reform and Consumer        Protection Act Created the SEC Incentive Program        Allowing New Whistleblower Bounty Provisions that allows Qualified Financial Fraud Whistleblowers, Securities Fraud        Whistleblowers, and SEC Violation Whistleblowers to        Collect Rewards for SEC Bounty Claims
In July 2010, the Dodd-Frank Wall        Street Reform and Consumer Protection Act was signed        into law which includes significant new financial fraud        bounty whistleblower provisions.  These provisions        create economic incentives for SEC violation        whistleblowers and other financial fraud whistleblowers        with "original information" of SEC violations and        financial fraud to blow the on large scale financial        fraud and SEC violations.  
These SEC bounty claims must be        brought voluntarily under the SEC Bounty Programs by one        or more individuals.  The whistleblower or        whistleblowers must be a natural person or natural        persons, companies or other entity is not eligible to be        financial fraud bounty whistleblowers.  Successful        SEC violation bounty whistleblowers and financial fraud        whistleblowers can collect financial rewards for        whistleblower bounty actions that result in the        imposition of monetary sanctions of greater than $1        million dollars.  This new financial fraud SEC        bounty program is called the "Securities Whistleblower        Incentives and Protection".  
Through SEC Whistleblower Bounty        Actions the SEC will award between ten percent and        thirty percent of the money collected to a qualified        whistleblower who voluntarily provides the SEC with        original information about a violation of the securities        laws that leads to a successful enforcement of an action        brought by the SEC that results in monetary sanctions        exceeding $1,000,000.00.   
So long as the financial fraud        whistleblower or financial fraud whistleblowers base        their claims on "original information", any person (not        just an employee or insider) may file a SEC financial        fraud bounty claim.  Further, if the financial        fraud whistleblower is represented by an attorney, the        whistleblower may file the financial fraud bounty claim        anonymously.  However, before the financial fraud        bounty award is paid, the whistleblower's identity shall        be revealed to the SEC and SEC shall be provided        information about the whistleblower that it requests. 
      SEC Securities Fraud Whistleblower Lawsuits,       Dodd-Frank Act Financial Fraud Whistleblower Bounty Actions,       CFTC Commodity Fraud Whistleblower Lawsuits, SEC       Whistleblower Incentive Program Claims, Financial Fraud       Derivatives Bounty Actions, & Financial Fraud False Claims Act  Whistleblower Lawsuits
       
Financial        Fraud Whistleblower Lawsuits, Securities Fraud        Whistleblower Lawsuits, Commodity Fraud Whistleblower        Lawsuits, Stimulus Fraud Whistleblower Lawsuits, and SEC        Violation Whistleblower Lawsuits will become more common        with the enactment of laws like the Dodd-Frank Wall        Street Reform and Consumer Protection Act that create        bounties that can be collected by whistleblowers that        properly report SEC violations, financial fraud,        securities fraud, commodities fraud, and stimulus fraud        that result in monetary sanctions over one million        dollars ($1,000,000.00).  The SEC can award the        whistleblower up to 30% of the money collected. 
SEC fines like the $550 million        dollar fine that Goldman Sachs agreed to pay in 2010 to        settle a civil suit over a package of mortgage-backed        securities designed by a hedge fund which was shorting        the housing market, the $50 million dollar SEC fine of GE        for accounting misdeeds when General Electric broke        rules and defrauded investors, and the SEC fines to        Citigroup Inc. and Putnam Investments for $20 million        and $40 million, for alleged concealing from customers        the fact that brokers were paid to recommend certain        mutual funds, creating a conflict of interest are        examples of financial fraud that Congress is hoping        financial fraud whistleblowers will come forward and        expose.
By creating whistleblower bounties        for investors and people with specific information of        financial fraud, it is expected that hard to detect        financial fraud including derivative market fraud and        investment fraud will be exposed to help regulate the        financial market and prevent large investment        corporations, banks, hedge funds, and other large        corporations from committing financial fraud of billions        of dollars.
 Stimulus Fraud Lawsuits, Financial Fraud Qui        Tam Lawsuits, and the Fraud Enforcement and Recovery Act of 2009 (May         2009)
In May 2009, the       
       Fraud Enforcement and Recovery Act of 2009 was        signed into law which makes important amendments to the        country's most important tool for fighting fraud, the        False Claims Act.  This new Federal False Claim Act        Legislation will protect hundreds of billions spent on        government programs from fraud and government waste and        expand the ability of whistleblowers to collect        compensation.
This Act amends the False Claims Act        to: (1) expand liability under such Act for making false        or fraudulent claims to the federal government; and (2)        apply liability under such Act for presenting a false or        fraudulent claim for payment or approval (currently        limited to such a claim presented to an officer or        employee of the federal government). Requires persons        who violate such Act to reimburse the federal government        for the costs of a civil action to recover penalties or        damages.  The Act also modifies and expands        provisions of the False Claims Act relating to        intervention by the federal government in civil actions        for false claims, sharing of information by the Attorney        General with a claimant, retaliatory relief, and service        upon state or local authorities in sealed cases. 
The Act also redefines "claim" to        include claims submitted "to a contractor, grantee, or        other recipient, if the money or property is to be spent        or used on the Government's behalf or to advance a        Government program or interest."  This language        makes explicit the ability of Government and        whistleblowers to pursue subcontractors and grantees.         This expansion will create potential liability to health        care providers and other businesses that contract with        government programs including Medicaid and Medicare.
The Act also redefines "obligation"        to include "an established duty, whether or not fixed,"        arising from a variety of relationships, and        specifically includes obligations "arising from statute        or regulation, or from the retention of any        overpayment."  This change allows the government        and whistleblower to pursue violations of regulatory        statutes with penalty provisions as False Claims Act        Case and pursue false documents which are "material to        an obligation to pay or transmit money...to the        Government" regardless of whether a false claim has been        submitted.  For example, a government contractor        who backdates records to support a claim already        submitted could be liable under this expansion.
The Act also expand the        anti-retaliation provisions from only employees to        include "contractors and agents" who "act to stop one or        more violations."  This expanded protection could        extend to contractors in government-funded managed care        plans who take action to stop false reporting or illegal        denial of service by the plan.
These expansions to the Federal False        Claims Act should increase the number of Federal False        Claims Act Lawsuits and allow the Federal Government to        crack down on fraud and wasteful spending as well as        recoup money that has been fraudulently obtained.
The Fraud Enforcement and Recovery        Act also expands federal fraud laws to encompass        independent mortgage companies, which are not currently        covered by antifraud statutes that apply to traditional        banks. Such independent mortgage companies originated        approximately half of all subprime loans in 2005 and        2006. The bill defines a financial institution that will        be covered by the fraud statutes as any business that        finances or refinances mortgages. The Act expands the        mortgage-related violations that are subject to both        criminal and civil punishments. Additionally, the        legislation makes it a crime to appraise a property        falsely, an effort to prevent the purposeful inflation        of home value appraisals that contributed to the housing        bubble and the resulting housing crisis. 
The Fraud Enforcement and Recovery        Act strengthens protections against attempts to defraud        the federal government, particularly through the        Troubled Asset Relief Program and the economic stimulus        package; expands the financial instruments that are        covered by the securities fraud statute; and clarifies a        money laundering statute. The Act provides $490 billion        in spending for investigation and prosecution of        mortgage fraud, securities fraud, and fraud cases        involving federal economic assistance.
American Recovery and Reinvestment Act of 2009        (February 2009)
In February 2009, the       
       American Recovery and Reinvestment Act of 2009 was        signed into law which includes significant new        whistleblower provisions. Section 1553 of the Act        prohibits any private employer or state or local        government that receives any funds pursuant to the Act        from retaliating against an employee who discloses,        internally or externally, information that the employee        reasonably believes constitutes evidence of one or more        of a number of specified improper uses of stimulus        funds, including gross mismanagement of an agency        contract or grant, gross waste of covered funds, or an        abuse of authority related to the implementation or use        of covered funds. Section 1553 establishes procedures        and damage remedies that are similar in some ways to        those with which many employers are familiar under        Section 806 of the Sarbanes-Oxley Act ("SOX"), but its        whistleblower provisions go beyond the whistleblower        protections of SOX in several respects.
TARP Fraud Whistleblower Lawsuits, Bail Out Fraud        Whistleblower         Lawsuits, Financial Fraud Federal False Claims Act        Lawsuits, and Stimulus Fraud Qui Tam Whistleblower Lawsuits 
Many financial fraud         whistleblower lawsuits may include also include         elements of stimulus fraud whistleblower qui tam         lawsuits or other Federal False Claims Act Lawsuits.          This potential Financial Fraud Actions under the Federal False  Claims         Act may allow a stimulus fraud whistleblower or         other financial fraud whistleblower to potentially         collect a large recovery for blowing the whistle on         financial fraud. 
The Troubled Asset Relief Program         (TARP) is a $700 Billion Bail Out of the troubled         United States Banking and Credit System.  It         was designed to unfreeze the credit market and         enable the government to purchase residential and         commercial mortgage assets, including whole loans         and securities.  Unfortunately, after it was         announced numerous Corporate interests began         scheming on how to get as much of the Bail Out money         as possible and use the money not for its intended         purpose, but to enrich the corporations,         shareholders, and CEOs that were able to get a         portion of the money.
If you are aware of a corporation,        CEO, or individual that has fraudulently obtained Bail        Out money or intentionally used this money contrary to        its intended purpose, there may be a viable Qui Tam        Claim that would allow you not only to recoup government        money for U.S. taxpayers, but also collect a portion of        that money for yourself. 
        
Economic Incentives for Whistleblowers         Lawsuits, Government Fraud Lawsuits, and Qui Tam Lawsuits Are One of the Least Expensive and Most Effective Mean of Preventing Fraud 
When a government imposes a         penalty, for the doing or not doing an act, and         gives that penalty in part to whistleblowers that         will sue for the same, and the other part of the         recovery goes to the government, and makes it         recoverable by action, such actions are called "qui         tam actions", the plaintiff is suing on their own         behalf as well for the government and taxpayers. 
Qui tam provisions of the False         Claims Act are based on the theory that one of the         least expensive and most effective means of         preventing frauds on taxpayers and the government is         to make the perpetrators of government fraud liable         to actions by private persons acting under the         strong stimulus of personal ill will or the hope of         gain. 
The strong public policy behind         creating an economic gain for whistleblowers is that          the government would be significantly less likely to         learn of the allegations of fraud, but for persons         in certain positions with specialized knowledge of         fraud that has been committed. Congress has made it         clear that creating this economic incentive is         beneficial not only for the government, taxpayers,         and the realtor, but is an efficient method of         regulating government to prevent fraud and         fraudulent schemes.
The central purpose of the qui         tam provisions of the False Claims Act is to set up         incentives to supplement government regulation and         enforcement by encouraging whistleblowers with         specialized knowledge of fraud going on in the         government to blow the whistle on the crime.         
The whistleblower's share of         recovery is a maximum of 30 percent and the         government's prior knowledge of fraud now does not         necessarily bar a whistleblower from collecting lost         revenue. If the government takes over the         lawsuit, the relator can "continue as a party to the         action." The defendant is also required to pay for         the relator's attorney fees. The whistleblower is         also protected from retaliatory actions by his or         her employer. As a result a 1986 amendment to the         False Claims Act, qui tam lawsuits have increased         dramatically.   Though the amendment was first made         for corrupt defense contractors, the amendment has         uncovered billions of dollars in health care fraud         and will probably apply to fraudulently obtained         TARP and Bail Out Funds. 
      Securities and Exchange Commission SEC Violation  Whistleblower Lawsuit,       Dodd-Frank Act Financial Fraud Whistleblower Bounty Lawsuit,       SEC Whistleblower Incentive Program Lawsuit, SEC Violation       Lawsuit, Financial Fraud False Claims Act Whistleblower Lawsuit,       Securities Fraud Action, Commodity Fraud Action, and SEC       Fraud Qui Tam Whistleblower Lawsuit       
Through Federal False Claims Act Whistleblower  Lawsuits, Qui Tam        Lawsuits, and other Government Fraud        Lawsuits, billions of dollars have been recovered from        fraudulent government contractors and corporations that have        committed fraud and stolen large amounts of money from the        government and taxpayers. 
It is extremely important that        Whistleblowers continue to expose fraudulent billing        practices and unnecessary treatments that cost billions        of dollars.   For more information on Whistleblower Lawsuits, please feel free to follow the these linkes: 
Medicare  Fraud Whistleblower Lawsuits,       
Defense  Contractor Fraud Whistleblower Lawsuits,        
Stimulus  Fraud Whistleblower Lawsuits, 
Health          Care Fraud lawsuit,       
       Medicare and Medicaid Fraud Lawsuits,       
Defense          Contract Fraud Lawsuits,       
       Government Contractor Fraud Whistleblower Lawsuits, or 
       Dentist         CHIP Fraud Lawsuits and Dental Medicaid Billing Fraud        Lawsuits.  For more information on Financial Fraud Whistleblower Lawsuits including Securities Fraud, Derivatives Fraud, Investment Fraud, and Commodity Fraud following the following link on 
Securities Fraud Whistleblower Bounty Actions &        Financial Fraud Whistleblower Lawsuits.