Will ‘Wall Street’ Sequel Influence SEC Whistleblowers?

The Dodd-Frank Wall Street Reform and Consumer Protection Act deputizes employees in Wall Street brokerage firms and public companies to be the eyes and ears of the Securities and Exchange Commission and the Commodities Futures Trading Commission. The law awards a whistleblower who provides "original information" leading to a successful prosecution 10% to 30% of any monetary sanctions exceeding $1,000,000 recovered by the SEC or CFTC.

In addition, the Act provides legal recourse for employees who are retaliated or discriminated against as a result of whistleblowing under the statute. In addition, if represented by counsel, the law provides for anonymity if the whistleblower so chooses, up until the whistleblower is paid their bounty.

Meissner, the site's founder, is a former Assistant Attorney General in N.Y. State Investor Protection and Financial Crimes Section both under Eliot Spitzer and his predecessor. Meissner was also a prosecutor in the Trial Division of the Manhattan district attorney's Office under Robert Morgenthau.

Meissner's firm has already filed five SEC complaints based on the new statute involving Wells Fargo Investments, Banc of America Investment Services, hedge fund Plainfield Asset Management and others. In addition, several other whistleblower claims involving past major investment bank and hedge fund activity are expected to be filed in the coming weeks. Most of the claims involve issues arising from the 2008 credit crisis.