Congress Must Protect Consumer Fraud Whistleblowers

In a new article for Law360, KKC founding partner Stephen M. Kohn outlines the need for Congress to pass the Financial Compensation for CFPB Whistleblowers Act. The bill, introduced in March, would establish a whistleblower award program at the Consumer Financial Protection Bureau (CFPB). Modeled off the Dodd-Frank Act which established the SEC Whistleblower Program, the bill offers mandatory awards and strong anonymity protections to qualified whistleblowers.

“The CFPB Whistleblowers Act virtually copies the Dodd-Frank whistleblower framework, recognizing it has been extraordinarily successful in the fight against investor fraud,” Kohn explains. “In fact, the SEC’s whistleblower program is generally considered the gold standard of whistleblower award programs globally.”

“A whistleblower program covering violations of the CFPA would protect the public from insurance fraud, credit fraud, investment fraud, identity theft, mortgage fraud and other consumer fraud schemes, which all too often go unchecked,” Kohn continues.

“Whistleblower award programs are a proven cornerstone to fighting fraud. We are using the full force of the law to protect investors. Don’t consumers deserve the same?”