Qui Tam

Corporate Lobby attempt to weaken the Whistleblower Provisisions in Dodd-Frank

By LaBovick Law

The Corporate Lobbyists are trying to make the whistleblower provisions in the Dodd-Frank less effective for whistleblowers.  We must stand up against them to help fight fraud. The National Whistleblower Center submitted very detailed comments addressing serious concerns with the recent recommendations made by the "Corporate Lobby" to the SEC..

According to the Executive Director of the National Whistleblower Center, Stephen M. Kohn, 

 'The Dodd-Frank Act clearly states that the rules implemented by the SEC must be ‘user-friendly'. We will be paying close attention to tomorrow's SEC meeting to see if the SEC's promise to protect whistleblowers is more than simple lip service.'

 A few key points from the letter to the SEC by the National Whistleblower Center include the following:

• Requiring Employees to Utilize Internal Corporate Whistleblower Procedures Would Violate the Law
• The SEC Should Implement a Rule that Prevents the Regulated Industry from eviscerating the ability of Internal Corporate Compliance Programs to Properly Detect and Prevent Fraud
• The Restrictions on Attorney Fees Urged by Baker Donelson Are Radical and Without Support in Law or Policy.
• The Other Proposals Should Be Summarily Rejected.

It is important to note that the law firm of Baker Donelson made a proposal to place a restriction on  attorneys who represent whistleblowers. If implemented, these restrictions would completely undermine the requirement that the Dodd-Frank whistleblower rules be "user-friendly'". 

These proposed restrictions are unprecedented in law, and none of the numerous federal whistleblower laws, including the False Claims Act, contain any type of restriction that is suggested by Baker Donelson law firm. If implemented, these proposals would undermine the efforts of the Dodd-Frank Act and make it nearly impossible for corporate whistleblowers to obtain attorneys to represent them in Dodd-Frank cases.

Important Links:

NWC Letter to SEC opposing corporate lobby position

Baker Donelson letter representing corporate lobby position

Arent Fox letter representing corporate lobby position

Full post as published by Whistleblower Law Blog on November 03, 2010 (boomark / email).