The Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law last month contains new laws rewarding whistleblowers who report securities and commodities fraud. The rewards can range anywhere from 10% to 30% of any sanctions exceeding $1 million (including penalties, disgorgement and restitution) arising from a judicial or administrative action brought under the securities laws or Commodity Exchange Act. Whistleblowers may file for an award anonymously, provided they are represented by counsel, but the person must reveal their identity to the Commission in order to receive an award. 

The Act requires the Commission to preserve the confidentiality of information provided by whistleblowers and their identity. The Act also allows whistleblowers to bring an action for retaliation by employers for either reporting fraud to the Commission or assisting an investigation conducted by the Commission. The employee may sue for reinstatement, back pay and attorneys’ fees.