Securities Fraud Whistleblowers

The SEC Whistleblower Program

What is the SEC Whistleblower Program?

If you have evidence of financial, corporate, or stock fraud, you could be eligible for a reward under the Securities and Exchange Commission’s (“SEC”) Whistleblower Program. Created by the Dodd-Frank Act, the SEC Whistleblower Program rewards whistleblowers up to 30% of the recoveries for submitting complaints to the SEC of securities law violations. In 2018, the SEC awarded $83 million to three whistleblowers from a single enforcement action.

How is the SEC Whistleblower Program different than the False Claims Act?

The SEC Whistleblower Program is different than other whistleblower programs. Unlike cases brought under the False Claims Act:

  • Whistleblowers can remain anonymous throughout the entire process but only if they are represented by counsel;
  • Whistleblowers disclose their information directly to the SEC, not by filing a Complaint in Federal Court;
  • Whistleblowers can use public information for the basis of their allegations so long as the information disclosed to the SEC is a unique analysis of that public information;
  • The Government must collect at least $1,000,000; and
  • The whistleblower does not need to be the first to alert the SEC about the fraud so long as the information disclosed to the SEC substantially assists in the investigation.

What are some examples of Securities Fraud schemes?

While relatively new, the SEC Whistleblower Program is proving to be just as successful in prosecuting fraud. In 2015 alone, the SEC rewarded more than $37 million to whistleblowers for providing information of securities fraud. Some common examples of securities fraud include:

  • Corporate Misconduct;
  • Insider Trading;
  • Violations of the Foreign Corrupt Practices Act;
  • Manipulation of Stock Market;
  • Accounting Violations; and
  • Ponzi Schemes.

What can I do to stop Securities Fraud?

If you have knowledge and proof of securities fraud violations, then give us a call today for a free consultation and case review with an experienced whistleblower attorney.

This information is for educational purposes. It is not offered as and does not constitute legal advice or legal opinions. You should not act or rely upon this information without seeking the advice of an attorney.


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