NY Whistleblower Bounty Program On The Horizon?

NY Attorney General Eric Schneiderman recently announced his plans to propose legislation that would create a whistleblower incentive program at the state level.  The proposal, titled the Financial Frauds Whistleblower Act, would provide monetary awards to eligible individuals who report original information about illegal activity in the banking, insurance, and financial services industries.  The Financial Frauds Whistleblower Act also would enhance anti-retaliation protection for employees who report suspicious or illegal activity.  Additionally, the proposal provides for confidentiality for whistleblowers.

Although the text of the proposal is not yet available, it appears that the state's bounty program would largely mirror the incentive program established under Dodd-Frank Act.  Steven J. Pearlman, co-chair of Proskauer's Whistleblowing & Retaliation practice group, was quoted on the practical implications of the proposed program in an article on Law360, stating