The Dodd Frank Whistleblower Program

When the Dodd Frank Whistleblower Program was instituted, it was to help control the crime that was taking place concerning insider trading. Too many people were getting rich gaming the system, and the average stock holders were the ones who had to foot the bill for the money that went missing. Here is how the dodd frank whistleblower Program has helped to control that growing crisis.

The Ability to Be Anonymous

In the past, if you were to report anyone at your job for insider trading, you were threatened with your job. So many people simply kept quiet, allowing these crimes to take place and hurt the entire industry. Today, the Dodd Frank Whistleblower Program allows individuals to anonymously report any wrong doing without fear of losing their jobs. Not only do they get to work in secrecy, if the accused party is found guilty, this person receives a substantial reward, in many cases several hundred thousand dollars.

Benefits of the Dodd Frank Whistleblower Program

In addition to the huge reward a person receives for reporting any crimes, the entire group of investors as a whole benefits. The guilty party must return any money to the system, and this helps to keep maintenance costs from rising, affecting each trader and their portfolio. The average trader stands to lose thousands each year in maintenance fees alone when these crimes go unreported. Now with this program, more people are stepping up and uncovering more crimes, and those guilty are realizing it is far too dangerous to continue to conduct themselves this way.