New CFTC Whistleblower Program Recognizes Internal Corporate Procedures

Posted by Susan M. Webman on September 26, 2011

The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted on July 21, 2010 (‘‘Dodd-Frank Act’’), required the Commodity Futures Trading Commission (“CFTC” or “Commission”) to establish a whistleblower program that awards eligible whistleblowers. The CFTC has issued its final rule, which is effective October 24.  To be eligible for the award, whistleblowers must voluntarily provide the Commission with original information about a violation of the Commodity Exchange Act (“CEA”) that leads to the CFTC’s success in a judicial or administrative or related enforcement action. The Dodd-Frank Act also prohibits employers retaliating against individuals who provide the Commission with information of possible CEA violations.

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Firing is not retaliation when employees leak to the press

Posted by Susan M. Webman on May 20, 2011

The Ninth Circuit Court of Appeals is the first federal appellate court to hold that employees who leak evidence of fraud to the press are not protected as whistleblowers under the Sarbanes-Oxley Act (often called the SOX Act after its sponsors), even when they argue that they were using the press to inform the government of the alleged fraud.  

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