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May 31, 2018 by |

The SEC Whistleblower Program

Unfortunately, fraud is very common and it is often not discovered until investors have experienced a substantial amount of loss. A California whistleblower attorney at Evans Law Firm can provide representation to those who have been defrauded in connection with financial products.

The Securities and Exchange Commission (SEC) urges insiders who know of wrongdoing to come forward in an effort to help fight financial fraud. To protect those who speak up and to incentivize people to report wrongdoing, the Securities and Exchange Commission has a whistleblower program.

The SEC’s Office of the Whistleblower has prepared a list of frequently asked questions about this program that provide insight into how it works and how whistleblowers are protected. Evans Law Firm provides personalized help to those who need information on the whistleblower policies the SEC has put in place.

Understanding the SEC Whistleblower Program

According to the SEC, the whistleblower program does more than just protect people who report potential violations of securities laws. The program was actually created and signed into law by Congress to create monetary incentives for those who report wrongdoing.

Eligible whistleblowers, or those who voluntarily provide the SEC with information about ongoing or upcoming violations of securities laws, could be entitled to receive between 10 percent and 30 percent of monetary sanctions that the SEC collects when bringing an action against suspected wrongdoers. The whistleblower is eligible for this financial award only when the SEC is able to take legal action that leads to more than $1 million in sanctions.

The SEC will reward whistleblowers who provide information on a wide variety of different violations of federal securities laws, but the more specific the information that a potential whistleblower provides, the more likely it is that the SEC will launch an investigation and potentially act on a tip.  In order to protect your chances at a reward, it is important that you do not just call or write the SEC with your tip.  There are specific forms and rules for SEC whistleblower tips and consult a whistleblower attorney, such as the whistleblower attorneys at Evans Law Firm, Inc. before you act.  You do not want to jeopardize your chances for a reward.

Some of the common types of cases where the SEC conducts investigations based on information provided by whistleblowers include:

  • Ponzi or pyramid schemes
  • Misappropriation of securities
  • Misappropriation of funds
  • Insider trading
  • Fraudulent securities offerings
  • Unregistered securities offerings
  • False SEC reports or misleading SEC reports
  • False financial statements or misleading financial statements
  • Other false or misleading statements about companies
  • Abusive naked short selling
  • Bribery of foreign officials or other improper payments to foreign officials
  • Fraudulent misconduct associated with public pension plans
  • Fraudulent misconduct associated with municipal securities transactions
  • Other types of fraud involving securities.

These are just a few of many examples of the types of situations where whistleblowers could voluntarily provide information to participate in the SEC’s whistleblower program, receive protection from retaliation, and potentially receive a portion of the money the SEC obtains through legal action.

If you need assistance with the SEC Whistleblower Program or if you have been victimized by financial fraud and you want help from a California whistleblower attorney, Evans Law Firm has the necessary experience to represent you. To find out more about the assistance we can provide, contact Evans Law Firm online or call 415-441-8669 for a free initial consultation as soon as possible.

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