Whistleblower Bounties May Encourage Residential Mortgage-Backed Securities Fraud Reporting

more+
less-

The government is using not only the False Claims Act ( FCA, 31 USC §3729) to fight financial fraud; it has been bringing claims against financial institutions under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), and the Financial Institutions Anti-Fraud Enforcement Act of 1990 (FIAFEA). While DOJ's website invites reporting of RMBS fraud and cites the FCA as a possible remedy, FIRREA may be a more natural fit for these cases, as financial fraud in RMBS cases is more likely to victimize private investors than the federal government. This article, which appeared in the August 27, 2012 issue of Westlaw Journal Bank & Lender Liability, discusses whistleblower awards under the various statutes and warns companies that enhanced whistleblower incentives necessitate actively monitored compliance programs that promote robust internal reporting.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DOJ

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×