FRAUD AND SOCIETY
ARTICLE SUMMARY 9

This is an article summary of CRYING FOUL: WHISTLEBLOWER PROVISIONS OF THE DODD-FRANK ACT OF 2010, Umang Desai, Loyola University Chicago Law Journal, 2011, 43 Loy. U. Chi. L.J. 427.
This Article examines how the Dodd-Frank Act, would encourage whistleblower participation in the promotion of corporate governance in an attempt to restore integrity in the corporate world and the financial markets after the wave of the several of the major fraudulent scandals. The provisions of the Act, are more likely to increase the financial burden on both corporations and the government, but however it has some consequences that could greatly diminish the positive impact of this legislation.
To delineate the goals and effects of any whistleblower provisions, it is important to understand the historical treatment of whistleblowers in the legislation and corporate practice. Accordingly, after examining the basic concepts of corporate governance, as well as prior treatment of whistleblowers in the existing whistleblower’s legislation. The primary goals of corporate governance in a market-based system include full disclosure and the production of accurate financial information. Whistleblowers have the potential to play an important role in this system because they are often the first to know when corporate disclosures are inaccurate. Corporate governance regulations are also intended to align the goals of the corporation's leaders with those of its shareholders
In theory, whistleblowers could play a large role in maintaining corporate integrity, but fear of retaliation has resulted in an alarming failure to disclose fraud. But in the practice, the Whistleblower's impact on Corporations has an intriguing relationship exists between a corporation and its shareholders. Essentially, whistleblowers possess knowledge about the corporation which