Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington...
-
Upload
anissa-french -
Category
Documents
-
view
219 -
download
0
description
Transcript of Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington...
![Page 1: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/1.jpg)
Federal Preemption under
Dodd-Frank’s Whistleblower Award Program
Kathleen ClarkWashington University in St Louis
6th International Legal Ethics Conference (ILEC-VI) London
10 June 2014
![Page 2: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/2.jpg)
Lawyer-Whistleblowers: Silence, Loyalty &
Federal Financial Rewards
Kathleen Clark& Nancy Moore
![Page 3: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/3.jpg)
3Federal
WhistleblowerRewardStatutes
![Page 4: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/4.jpg)
False Claims Act
Tax Relief & Health Care Act of 2006
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
![Page 5: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/5.jpg)
False Claims Act
Tax Relief & Health Care Act of 2006
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
![Page 6: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/6.jpg)
False Claims Act
Tax Relief & Health Care Act of 2006
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
![Page 7: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/7.jpg)
whistleblower
rewardsv.
protection
![Page 8: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/8.jpg)
- voluntarily provides- original information- successful enforcement action- monetary sanctions > $1 million
Dodd-Frank
![Page 9: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/9.jpg)
whistleblower receives
10 – 30 %of
sanctions
Dodd-Frank
![Page 10: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/10.jpg)
![Page 11: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/11.jpg)
SEC sanctions > $ 1 million
“Notices of Covered Action”
90 days
![Page 12: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/12.jpg)
![Page 13: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/13.jpg)
3000 tips / year
![Page 14: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/14.jpg)
![Page 15: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/15.jpg)
6 awards
largest: $14 million
![Page 16: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/16.jpg)
Can lawyers take advantage
of these whistleblower awards
?
![Page 17: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/17.jpg)
Dodd-Frank
statutorysilence
re: lawyers
![Page 18: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/18.jpg)
Dodd-Frank
SECregulations
re: lawyers
![Page 19: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/19.jpg)
Dodd-Frank SEC regs
Can’t use information:
-subject to A-C privilege or-gained thru legal representation . . . unless . . .
![Page 20: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/20.jpg)
Dodd-Frank SEC regs
. . . unless permitted by: - applicable state professional rules - SEC SOX regulation - “otherwise”
![Page 21: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/21.jpg)
Professional Rules
confidentiality exceptionsfor client fraud
varystate-to-state
![Page 22: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/22.jpg)
SOX regulation
disclose to: • prevent material violations
• rectify consequences of material violation – if lawyer’s services were used
![Page 23: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/23.jpg)
SOX regulation
confidentiality exceptionsbroader
thanmost states
![Page 24: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/24.jpg)
SOX regulation
asserts federal
preemption
![Page 25: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/25.jpg)
Supremacy Clause
laws of the United States made in pursuance of
Constitution shall be supreme law of the land
![Page 26: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/26.jpg)
Preemption
Has Congress exercised
this power?
![Page 27: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/27.jpg)
expresspreemption
![Page 28: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/28.jpg)
impliedpreemption
![Page 29: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/29.jpg)
regulationexpresslyasserts
preemption
![Page 30: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/30.jpg)
impliedpreemption
![Page 31: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/31.jpg)
obstacleor
frustrationpreemption
![Page 32: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/32.jpg)
§ 307 of Sarbanes Oxley Actrequired SEC to issue rules
minimum standards of professional conduct for
attorneysincluding
internal whistleblowing
![Page 33: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/33.jpg)
§ 307 of Sarbanes Oxley Actrequired SEC to issue rules
minimum standards of professional conduct for
attorneysincluding
internal whistleblowing
![Page 34: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/34.jpg)
SOX regulation
• requires internal whistleblowing• created additional confidentiality
exceptions
![Page 35: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/35.jpg)
SOX regulation
asserts conflict
preemption
![Page 36: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/36.jpg)
SOX regulation
resistance fromWashington state
&California
![Page 37: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/37.jpg)
SOX regulation
applies to lawyers who“appear or practice”
before SEC
![Page 38: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/38.jpg)
“appear or practice”
communicatewith SEC
![Page 39: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/39.jpg)
SOX regulation
applies to lawyers whoblow the whistle
to the SECunder Dodd-Frank
![Page 40: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/40.jpg)
SOX regulation
displacesmore restrictive
stateconfidentiality rules
![Page 41: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/41.jpg)
SOX regulation
does not displace state rules
on other issues
![Page 42: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/42.jpg)
adequately inform clientMR 1.4
conflicts of interestMR 1.7(a)(2)
MR 1.8(a)
![Page 43: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/43.jpg)
obligations tocurrent
v.former clients
![Page 44: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/44.jpg)
Dodd-Frank
protectsconfidentiality of whistleblower’s
identity
![Page 45: Federal Preemption under Dodd-Franks Whistleblower Award Program Kathleen Clark Washington University in St Louis 6 th International Legal Ethics Conference.](https://reader035.fdocuments.in/reader035/viewer/2022062311/5a4d1b767f8b9ab0599b734d/html5/thumbnails/45.jpg)
Federal Preemption under
Dodd-Frank’s Whistleblower Award Program
Kathleen [email protected]
6th International Legal Ethics Conference (ILEC-VI) London
10 June 2014