New York Attorney General Eric Schneiderman said Thursday that he would propose legislation in Albany to protect and reward employees who report information about illegal activity in the banking, insurance and financial services industries.
As it stands now, New York does not have a law to protect or incentivize whistleblowers who report securities and other financial frauds.
Schneiderman’s bill, the Financial Frauds Whistleblower Act, would provide financial compensation to whistleblowers who voluntarily report fraud in their industry and whose tips lead to more than $1 million in penalties or settlement proceeds.
“From holding the banks accountable for the collapse of the housing market, to taking on unfair advantages for high-frequency traders, this office has committed to promoting fairness and a level playing field for all investors. And yet, a valuable tool for building these cases is rarely at our disposal,” Schneiderman said in a statement.
New York, he continued, “has a unique opportunity to set the gold standard for states seeking to expose and hold individuals accountable for financial crimes. This law will be the strongest, most comprehensive in the nation, and is long overdue for a state with the world’s most important financial markets.”