An SEC Whistleblower Attorney Can Help
The financial rewards for being an SEC whistleblower are great.
Under the SEC Whistleblower Program, successful whistleblowers are eligible to receive a reward of 10-30% of the amount the SEC recovers in sanctions. During the past decade alone, the SEC has recovered in excess of $5 billion in sanctions through its enforcement actions.
Filing an SEC whistleblower case can be complex. Getting the SEC to prioritize your whistleblower case is even more difficult.
The U.S. Securities and Exchange Commission (SEC) is the federal agency responsible for enforcing the federal securities laws, regulating the securities industry and overseeing the nation's stock and options exchanges.
There are two important federal laws that impact all SEC whistleblowers:
- Dodd Frank Act (DFA), which creates the SEC's whistleblower program and provides rewards to whistleblowers who report fraud to the SEC, Commodity Futures Trading Commission (CFTC), and other government authorities
- Sarbanes Oxley Act (SOX), which protects whistleblowers from retaliation for reporting violations of any rule or regulation of the SEC; federal criminal provisions relating to securities, bank, mail, or wire fraud; and any federal law relating to fraud against shareholders
To win your SEC whistleblower case, you must follow very specific rules. Here are three you should know about:
- Whistleblower Reward: SEC whistleblowers are eligible to recover a significant financial reward. However, to qualify for a whistleblower reward, the SEC's rules require you to provide "original information" relating to violations of securities laws, and your information must lead to a recovery totaling $1 million or more.
- Whistleblower Protection: SEC whistleblowers are guaranteed strong protection against retaliation. However, to qualify for whistleblower protection, the SEC's rules require that you prove that your employer was on notice of your complaint and that your complaint was a "contributing factor" that led to the retaliation.
- Whistleblower Confidentiality: SEC whistleblowers are allowed to report fraud anonymously. However, to qualify for confidentiality, the SEC's rules state that you must file your whistleblower complaint through legal counsel.
Filing an SEC whistleblower case can be complex. Getting the SEC to prioritize your whistleblower case is even more difficult.
If you are thinking about blowing the whistle on securities fraud or other financial misconduct, you should seek counsel from an SEC whistleblower attorney. Our SEC whistleblower attorneys provide assistance to whistleblowers across the United States.
Do I Have a Good SEC Whistleblower Case?
The first thing our SEC whistleblower lawyers do is determine if you have a good case.
Building a winning SEC whistleblower case requires a solid investigation, careful legal analysis and cooperation with the SEC. To help you build the best case, our legal team implements a comprehensive strategy for success. Our strategy always includes:
- Investigation: We immediately initiate a confidential investigation to identify the documents, electronic evidence, and witnesses who will serve as the foundation of your whistleblower complaint.
- Evaluation: We carefully evaluate the financial compliance issues, securities laws, and regulations that impact your complaint and work with financial experts who analyze the value of the available monetary sanctions in your case.
- Collaboration: We promptly file your SEC whistleblower case and collaborate with the government throughout all phases of its investigation to help protect your identity and maximize your whistleblower reward.
Investment fraud is not limited to stock and securities fraud. There are literally hundreds of financial fraud schemes that will give rise to an SEC whistleblower case. The most common schemes involve:
- Public Company Misstatements, including accounting fraud and material misstatements and omissions that might influence or change the decisions of investors or financiers
- Asset Management Fraud, including fraud involving investment advisors, investment companies, hedge funds, and private equity funds
- Foreign Corrupt Practices Act Violations, including bribery and the making of payments to foreign government officials, politicians, and political parties to obtain or retain business
- Market Abuse, including insider trading rings, broker fraud, and complex manipulation schemes
- Municipal Securities and Public Pension Abuse, including offering and disclosure fraud, tax or arbitrage-driven fraud, pay-to-play and public corruption violations, public pension accounting and disclosure violations, and valuation and pricing fraud
If you think you may have an SEC whistleblower claim, don't delay. The law has very strict time limits.
If you wait too long, you will lose the right to file your whistleblower complaint or someone will file before you. The sooner you involve an SEC whistleblower law firm, the greater your chances of success.
Choosing the Right SEC Whistleblower Lawyer Can Make All the Difference
Working with a skilled SEC whistleblower attorney can greatly increase your chances of success.
The primary tool used to encourage whistleblowing is the SEC's whistleblower rewards program. Here's how it works.
Whistleblower rewards are at the discretion of the SEC. They can be as low as 10% or as high as 30%. They are highly influenced by the type of information you provide, the manner in which you assist the government, and the nature of your case.
The SEC considers the following three factors when deciding whether your reward should be increased:
- Significance of Information: The SEC wants strong, well-documented tips, especially first-hand details that expose large-scale securities and commodities violations. As a result, whistleblowers who provide the most significant information will receive the most significant rewards.
- Degree of Assistance: The SEC wants whistleblowers and their attorneys to provide substantial assistance, especially during the investigation and pretrial phases of the case. As a result, whistleblowers who provide the greatest degree of assistance will receive the most significant rewards.
- Potential for Deterrence: The SEC wants whistleblower cases that deter future financial misconduct, especially the type of dishonesty that caused the Enron, WorldCom and Bernie Madoff investment scandals. As a result, whistleblowers who bring cases that have the greatest potential to deter future frauds against investors will receive the most significant rewards.
While maximizing your reward is always a priority, protecting yourself against whistleblower retaliation is equally important.
SEC whistleblower retaliation occurs when you are wrongfully terminated, intimidated, harassed, or subjected to any other form of discrimination after engaging in a protected whistleblower activity.
SEC whistleblower protection laws prohibit an employer from retaliating against you after you make a complaint about a violation of any law, rule, or regulation subject to SEC regulation. These laws broadly apply to a wide class of employees, including:
- Employees of publicly traded companies
- Employees of subsidiaries and affiliates of publicly traded companies
- Employees of contractors, subcontractors, and agents of publicly traded companies
- Employees in the financial services industry who disclose information concerning fraudulent or unlawful conduct relating to a consumer financial product or service
SEC whistleblowers who suffer retaliation have the right to file a private lawsuit in federal court. In that lawsuit you can seek reinstatement, double back-pay, and payment for your litigation costs and attorneys' fees.
Our SEC whistleblower attorneys understand exactly how to maximize your reward and protect your rights. Let us start helping you today.
