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The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) and Financial Institutions Anti-Fraud Enforcement Act (FIAFEA) whistleblower program stand as crucial pillars in the Department of Justice’s efforts to maintain the integrity of financial institutions and combat fraudulent activities. Pugsley Wood attorneys represented 2 of the 6 FIRREA whistleblowers known to have received FIRREA awards in the history of this program.
Enacted in 1989 in the aftermath of the savings and loan crisis, FIRREA was designed to address financial fraud, regulatory non-compliance, and other misconduct within the banking and financial industry. Congress enacted FIAFEA a year after FIRREA to incentivize individuals to come forward with valuable information relating to FIRREA violations. The FIAFEA whistleblower program, an integral component of this legislation, incentivizes individuals with insider knowledge to come forward and report such illicit activities.
Key Provisions of the FIRREA/FIAFEA Whistleblower Program
Under FIAFEA, whistleblowers who provide original information leading to a successful enforcement action may receive a reward of 20% to 30% of the first $1,000,000 recovered, 10 percent to 20% of the next $4,000,000 recovered, and 5% to 10% of the next $5,000,000 recovered, up to a maximum of $1.6 million. This program not only encourages individuals to expose financial wrongdoing but also serves as a powerful deterrent against fraudulent practices within the industry.
To submit a FIRREA whistleblower claim under FIAFEA, the whistleblower must submit a confidential declaration, under oath, setting forth a specific set of facts about the alleged fraud. The declaration cannot be based on information that has been publicly disclosed unless the declarant is the original source of that information.
The lawyers at Pugsley Wood attorneys understand the complex legal landscape surrounding FIRREA/FIAFEA and specialize in guiding whistleblowers through the intricate process of reporting and ensuring their rights are protected. We leverage our expertise to navigate the nuances of FIRREA/FIAFEA, advocating for our clients and maximizing their chances of a successful resolution.
If you are considering blowing the whistle on individuals or companies involved in financial crimes, our experienced whistleblower attorneys are available to help you understand your rights, assess the strength of your case, and guide you through the reporting process.
Contact us today to schedule a confidential consultation.