Nashville Whistleblower Attorney: The Principal Financial Services-Related Whistleblower Laws9/26/2024
the Bank Secrecy Act If you are considering blowing the whistle, call Nashville whistleblower attorney Timothy L. Miles today
The Bank Secrecy Act (BSA), 31 U.S.C. 5323 et seq., prohibits financial institutions from punishing or discriminating against an employee for reporting potential violations of certain laws by the institution or its directors, officers, or employees to a federal supervisory agency. Additionally, the BSA allows for government rewards to whistleblowers who provide original information that leads to the collection of fines, civil penalties, or forfeitures related to BSA violations.
Before the passage of the AMLA, the BSA only protected individuals who reported complaints to the government, not internal complaints. Employees or former employees have a two-year window from the date of the alleged retaliation to file a civil complaint in federal district court. Possible remedies may include reinstatement, compensatory damages, and other appropriate actions to rectify the past discrimination. These protections do not extend to employees who intentionally contribute to or participate in the alleged violation, or who knowingly or recklessly provide substantial evidence in support of the violation. Pre-AMLA, the BSA capped government payments at $150,000, however, and affords the Treasury Department discretion in deciding whether to issue an award in any amount up to that limit. These aspects have curtailed the impact of the BSA on money-laundering enforcement and made it much less effective than the bounty program established by the SEC under the Dodd-Frank Act (DFA). the Federal Deposit Insurance Act
The FDIA, also known as the Federal Deposit Insurance Act, prohibits any form of discrimination or discharge against an employee by federal banking agencies, federal home loan banks, federal reserve banks, or individuals performing functions on behalf of the FDIC. This includes discrimination in terms of compensation, employment conditions, privileges, or any other aspect of employment.
The act protects employees who provide information to these agencies or banks, or to the Attorney General, regarding potential violations of laws or regulations, gross mismanagement, misuse of funds, abuse of authority, or any substantial and specific threat to public health or safety. This provision can be found in section 5328 of the U.S. Code. The Financial Institutions Reform, Recovery, and Enforcement Act
The Financial Institutions Reform, Recovery, and Enforcement Act, also known as FIRREA, was passed in response to the savings and loan crisis in the late 1980s. This act allows whistleblowers to submit a statement to the U.S. Department of Justice (DOJ), detailing one or more violations of FIRREA that impact a depository institution insured by the FDIC or any other U.S. agency or entity.
The whistleblower's statement is not submitted in court and is kept confidential by the DOJ for at least one year, and possibly longer. The DOJ is responsible for investigating the claims, and if successful, the whistleblower may be eligible to receive a reward of 20%-30% of any recovery up to the first $1 million, 10%-20% of the next $4 million, and 5%-10% of the subsequent $5 million recovered. In a FIRREA case, the Attorney General has the authority to grant a portion of any criminal recovery under FIRREA to the whistleblower, either in addition to or instead of a civil penalty. The Dodd-Frank Wall Street Reform and Consumer Protection Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act, 15 U.S.C. § 78u-6(a)(6), protects whistleblowers who provide information regarding (or cooperate in the investigation of) any potential violation of U.S. securities laws. An employer may not discharge, demote, suspend, threaten, or harass, directly or indirectly, or in any other manner discriminate against an individual based on his or her whistleblowing.
Dodd-Frank only protects the employee against retaliation if the federal violation falls within the SEC’s jurisdiction. Examples of violations that fall within the SEC’s jurisdiction include accounting fraud, providing false information, insider trading and other violations of securities law. The statute of limitations is six years. Remedies include reinstatement, double the back pay owed, plus interest, reasonable attorneys’ fees, litigation costs, and expert witness fees. The Sarbanes-Oxley Act
In response to corporate failures and fraud that resulted in substantial financial losses to institutional and individual investors, Congress passed the Sarbanes Oxley Act in 2002. The anti-retaliation safeguards provided by the Sarbanes-Oxley Act (also known as "Sarbanes Oxley" or "SOX") shield employees of public companies from facing retaliation in their terms and conditions of employment. These protections are in place when employees provide information, contribute to the provision of information, or assist in an investigation pertaining to alleged violations of mail fraud, wire fraud, radio fraud, television fraud, bank fraud, securities fraud, any rule or regulation set by the Securities and Exchange Commission (SEC), or any federal law related to fraud against shareholders (18 U.S.C. § 1514A(a)(1)).
For an employee to be protected under these provisions, they must provide the aforementioned information or assistance to a Federal regulatory or law enforcement agency, a member or committee of Congress, or a person with supervisory authority over the employee (or another person authorized by the employer to investigate, uncover, or terminate misconduct). It is not necessary for the employee to demonstrate that an actual violation has occurred. Instead, to be protected, the employee must show that they "reasonably believe" that a violation is taking place. In Lawson v. FMR LLC, 134 S. Ct. 1158 (2014), the Supreme Court held that SOX may also provide whistleblower protection to employees of private contractors of publicly traded companies and their subsidiaries. Since Lawson, courts have generally limited the ruling’s application, holding that the contractor must have been integrally involved in the transaction to be covered by SOX Federal False Claims Act and New York False Claims Act and the New York False Claims Act
The federal False Claims Act prohibits the intentional submission of inaccurate or deceptive claims to the United States government or a third party that has received funding or will be reimbursed by the government. This law, outlined in Section 3729 of Title 31 of the U.S. Code, applies to banks that have business dealings with the federal government, particularly those with government-insured loans.
The New York False Claims Act closely mirrors the federal FCA. It imposes penalties and fines on individuals and organizations that file false or fraudulent claims seeking payment from state or local governments. This provision is found in Section 91 of the New York Financial Law. If You Are Thinking of Blowing the Whistle, Contact Nashville Whistleblower Attorney Timothy L. Miles Today
If you have knowledge of fraud against or by the federal government, contact Nashville whistleblower attorney Timothy L. Miles who can guide you through the whistleblower process and explain your whistleblower protections. The consultation is free and confidential. Just complete the form below to get started or call (855) Tim-M-Law. Ask a Nashville whistleblower attorney, you could be entitled to a significant whistleblower award.
Please also visit our Resources center which provides a wealth of information on whistleblower lawsuits, among others. Call today and see what a Nashville whistleblower attorney can do for you.
The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center 300 Centerview Dr., #247 Brentwood, TN 37027 Phone: (855) 846–6529 Email: [email protected] Symbotic stock loss lawyer Timothy L. Miles
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