Financial Fraud

Insider Trading, Ponzi Schemes, Money Laundering- Not Up In Here!

Following the Madoff debacle, Congress responded with the Dodd-Frank Act, which established qui tam rewards to encourage insiders to blow the whistle on violators of SEC laws, and other violations. Such areas as money laundering, Ponzi schemes, insider trading, and bribes to foreign governments to obtain business are specifically addressed. If you have in-depth knowledge of such fraudulent activities in the financial industry, whistleblower lawyer James T. Ratner can help you pursue your case and earn your reward for the valuable information you provide to government agencies.

Blow the Whistle on Money Laundering

The Dodd-Frank Act gives the SEC the ability to address anti-money laundering violations. If a bank or corporation commits money laundering violations that cause its records to be inaccurate, then an SEC action could result. The SEC can pursue issuers of securities when money laundering violations result in material misstatements in financial disclosures.

The SEC can also prosecute cases under the USA Patriot Act when financial institutions fail to follow the required anti-money laundering procedures, such as customer-identification requirements. The whistleblower provisions under Dodd-Frank are not limited to actions brought by the SEC. Section 922 provides recovery in “related action[s],” as well as actions stemming from original information that was provided to the SEC. A related action is any judicial or administrative action resulting in a recovery of $1 million or more in civil penalties, including actions brought by any other law enforcement agency, such as the U.S. attorney general, other regulatory authorities, or any state attorney general. In other words, if a whistleblower files a tip with the SEC about a money laundering violation and as a result, the NY AG brings an enforcement action, the whistleblower would be entitled to a reward.

In the largest money laudering enforcement action to date, the New York State Department of Financial Services levied a $340 million penalty against Standard Chartered Bank for laundering billions of dollars of illicit Iranian funds.

The SEC whistleblower program also provides a monetary award for whistleblowers who provide quality information regarding violations of the Foreign and Corrupt Practices Act (FCPA). The FCPA was enacted to deter companies from paying bribes to foreign officials and prohibit the falsification of related financial records in order deter graft and to level the playing field in the world market.

Tax Fraud

Similar to the SEC, the IRS has its own Whistleblower Office and program to provide incentives for whistleblowers to report instances of tax fraud. The IRS rewards whistleblowers who can provide information about large-scale underpayments by corporations with a percentage of the amount recovered.

A Bill in NY State

New York lawmakers are currently considering NYS Bill No. 4362, which would provide incentives for whistleblowers to report violations of the State's banking, insurance, and financial services laws. This potential New York law would help strengthen the financial industry and reward the whistleblowers who report violations such as money laundering. It might also have triggered a huge whistleblower reward in the above-mentioned Standard Chartered case.

If you have in-depth knowledge of fraud in the financial industry, please contact James T. Ratner or call (845) 688-5222 today to discuss your case with an experienced whistleblower lawyer, who represents clients from New York and nationwide.

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