Bill > S07494

This bill, known as the "Government Response to Insider Fraud and Trading (GRIFT) Act", establishes a comprehensive whistleblower program for securities and financial services fraud in New York State. The bill creates a robust framework that incentivizes individuals to report potential violations by offering financial rewards of 10-30% of monetary sanctions resulting from successful enforcement actions, while also providing strong protections against employer retaliation. Key provisions include defining "original information" as independently derived knowledge not previously known to regulators, establishing criteria for whistleblower awards, and ensuring that whistleblowers cannot be fired, demoted, suspended, or otherwise discriminated against for reporting potential violations. The bill covers both the Attorney General's office and the Department of Financial Services, allowing whistleblowers to report violations related to securities, banking, and insurance laws. Whistleblowers are entitled to significant legal protections, including potential reinstatement, double back pay, and compensation for damages if they experience retaliation. The legislation also ensures confidentiality of whistleblower identities and explicitly states that whistleblower rights cannot be waived through employment agreements or contracts. Importantly, the bill does not create a private right of action but provides a comprehensive administrative mechanism for reporting and addressing potential financial fraud.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/S7494