Supreme Court: Dodd-Frank Whistleblower Protection Is Narrow
Featured Legal News
The Supreme Court ruled Wednesday that whistleblower protections passed by Congress after the 2008 financial crisis only apply to people who report problems to the government, not more broadly.
The justices said that a part of the Dodd-Frank Act that protects whistleblowers from being fired, demoted or harassed only applies to people who report legal violations to the U.S. Securities and Exchange Commission. They said employees who report problems to their company's management but not the commission don't qualify.
People who report issues to their company's management are still protected against retaliation but under an older law, the 2002 Sarbanes-Oxley Act. But the two laws differ in a number of ways, including how long people have to bring a lawsuit and how much money they can get in compensation.
The justices were unanimous in agreeing that the whistleblower protection in the Dodd-Frank Act only covers people who report to the SEC. Writing for the court, Justice Ruth Bader Ginsburg said "Dodd-Frank's text and purpose leave no doubt" about who the term "whistleblower" applies to.
"The definition section of the statute supplies an unequivocal answer: A 'whistleblower' is 'any individual who provides ... information relating to a violation of the securities laws to the Commission,'" she wrote.
The SEC had interpreted the whistleblower protection in the Dodd-Frank Act more broadly, an interpretation the Supreme Court rejected.
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Thai National Sentenced, Faces Deportation for Operating Immigration Fraud Scheme
Nimon Naphaeng, 36, a native and citizen of Thailand, who resided in Wakefield, R.I., was sentenced Monday to 27 months in federal prison for running an immigration fraud scheme that defrauded more than 320 individuals, most of them immigrants, of at least $400,000, and perhaps more than $518,000.
The scheme included the unauthorized filing of false asylum applications on behalf of individuals who did not request, nor authorize, the applications.
“U.S. Citizenship and Immigration Services does not tolerate immigration fraud of any kind,” said Susan Raufer, director of the USCIS Newark Asylum Office. “We are proud of our role in uncovering this fraud scheme and bringing the perpetrator to justice.”
At sentencing, U.S. District Court Chief Judge William E. Smith ordered a provisional amount of restitution of $400,000. The final amount of restitution will be determined subject to additional victims being identified and additional court filings over the next 90 days. According to court documents already filed by the government, restitution in this matter may exceed $518,300. During the investigation, the government seized $285,789.31 from Naphaeng. The forfeited funds will be applied toward restitution for victims of Naphaeng’s crimes.