Image of Are disclosures about bank fraud protected under the Sarbanes-Oxley whistleblower law?

Are disclosures about bank fraud protected under the Sarbanes-Oxley whistleblower law?


SOX Whistleblower Law Protects Disclosures About Bank Fraud

Yes, a disclosure about bank fraud is protected conduct (protected whistleblowing) under the whistleblower protection provision of the Sarbanes-Oxley Act.

The elements of bank fraud under 18 U.S.C. § 1344(1) are:

  1. that the defendant knowingly executed or attempted to execute a scheme to defraud a financial institution;
  2. that the defendant did so with the intent to defraud; and
  3. that the financial institution was insured by the FDIC.

The intent to defraud may be established by circumstantial evidence.

Examples of SOX case cases entailing disclosures of bank fraud include:

  • Guitron v. Wells Fargo Bank, N.A., No. C 10-3461 CW, 2012 WL 2708517 (N.D. Cal. July 6, 2012), where the court held that disclosures about bankers allegedly opening and closing accounts “without the customer’s permission or knowledge” and misleading customers about the terms of accounts were protected under SOX.
  • Erhart v. BofI Holding, Inc., No. 15-cv-02287 (S.D. Cal. Sept. 11, 2017), where the court held that plaintiff’s disclosures about the CEO depositing third-party checks for structured settlement annuity payments into a personal account, including nearly $100,000 in checks made payable to third parties, were protected under Section 806 of SOX.

Whistleblower Protections for Banking/Financial Services Whistleblowers

Sarbanes-Oxley Whistleblower Damages and Remedies

SOX Whistleblower Lawyers’ Guide to SOX Whistleblower Protection Law

For more information about the SOX whistleblower law, download our free guide to Sarbanes-Oxley Whistleblower Protection

Whistleblower Lawyers Representing Sarbanes-Oxley (SOX) Whistleblowers

We have assembled a team of leading whistleblower lawyers to provide top-notch representation to Sarbanes-Oxley (SOX) whistleblowers.  Recently Washingtonian magazine named two of our attorneys top whistleblower lawyers. U.S. News and Best Lawyers® have named Zuckerman Law a Tier 1 Law Firm in the Washington D.C. metropolitan area.

The SOX whistleblower lawyers at Zuckerman Law have substantial experience litigating Sarbanes Oxley whistleblower retaliation claims and have achieved substantial recoveries for officers, executives, accountants, auditors, and other senior professionals.  To schedule a free preliminary consultation, click here or call us at 202-262-8959.

Jason Zuckerman, Principal of Zuckerman Law, litigates whistleblower retaliation, qui tam, wrongful discharge, and other employment-related claims. He is rated 10 out of 10 by Avvo, was recognized by Washingtonian magazine as a “Top Whistleblower Lawyer” in 2015 and selected by his peers to be included in The Best Lawyers in America® and in SuperLawyers.