n July this year, Representative Michael Grimm (R-NY) introduced a bill in the U.S. House of Representatives called the “Whistleblower Improvement Act of 2011.” Currently before the House Committee on Financial Services, the bill would require whistleblowers to first report fraud internally to their employers.  Critics have raised concerns that this could help companies cover their tracks before the case is brought to light, and that the the bill would eliminate many of the rules which protect whistleblowers from retaliation by employers.

Critics also maintain that the bill threatens the effectiveness of the nascent Commodity Futures Trading Commission (CFTC) whistleblower program, a product of the Dodd-Frank Financial Reform Bill.  Finalized just last week, the CFTC whistleblower program closely mimics that of the SEC and permits those who report fraud and assist the government to obtain a reward of up to 30% of the recovery in a successful enforcement action.

Read the bill, Whistleblower Improvement Act of 2011