Bill > A08016

This bill, known as the "Government Response to Insider Fraud and Trading Act" (GRIFT Act), establishes a comprehensive whistleblower program for securities and financial services fraud in New York State. The bill creates mechanisms for individuals to report violations of financial laws, with significant protections and potential financial rewards. Whistleblowers who voluntarily provide original information leading to successful enforcement actions can receive between 10% and 30% of monetary sanctions exceeding $1 million. The bill protects whistleblowers from retaliation by employers, prohibiting discrimination, demotion, suspension, or harassment, and provides robust remedies including reinstatement, back pay, and legal fees. Importantly, whistleblowers can report violations through various channels, including to government entities, supervisors, or compliance officers, and their actions are considered lawful even if they might technically violate existing contracts or employment agreements. The bill applies to both securities fraud and financial services violations, and it allows whistleblowers to remain anonymous during initial reporting, though they must ultimately disclose their identity before receiving an award. The Attorney General and the Department of Financial Services are authorized to implement and enforce these provisions, with discretion in determining whistleblower awards and protections.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A8016