In 2010, Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act to address the rampant fraud occurring in our country’s financial system.
Under Dodd-Frank, the SEC developed the SEC Whistleblower Program through the Office of the Whistleblower, which allows eligible whistle blowers receive significant monetary awards for tips that lead to prosecution or enforcement actions.
The SEC Whistleblower Program affords employment protections to whistleblowers and the ability to report anonymously.
Fob James Law Firm has extensive experience representing SEC whistleblowers. Through our experience and relationships, the whistleblower complaints that our clients submit to the SEC are taken very seriously and given thoughtful consideration.
If you have knowledge of a fraudulent practice occurring within or by a financial institution, contact Fob James Law Firm today for a free and confidential consultation.
What Are The Eligibility Rules Of The Whistleblower Program?
Not every tip qualifies under the program. According to the SEC, the key eligibility factors include the following:
- The information must be original, something not known to the SEC.
- The tip must be provided voluntarily, before the agency or financial institution has reported the information.
- The whistleblower’s submission must lead to a successful enforcement action resulting in monetary sanctions exceeding $1 million.
How Do I Submit A Whistleblower Tip To The SEC?
In order to qualify as a whisteblower, you must first submit a Form TCR to the Office of Whistleblower.
The most common method of submitting a tip to the SEC is by filling out the form online through the SEC’s website. You also have the option of mailing or faxing a Form TCR to the Office of Whistleblower.
Importantly, the information you submit to the SEC is under a penalty of perjury. This means that if you misrepresent a material fact to the SEC, you could be prosecuted. For this reason, we recommend that you consult with a whistleblower attorney before submitting a Form TCR to the SEC.
The SEC receives thousands upon thousands of tips every year. It goes without saying that the SEC is looking for the most qualified whistleblowers and meaningful tips.
Working with a whistleblower attorney at the Fob James Law Firm is advantageous as we assist in drafting the whistleblower complaint, collecting evidence, and presenting the complaint to the SEC. Through our prior and existing cases, we also have relationships at the SEC.
Can I Submit A Tip To The SEC Anonymously?
Yes, you can submt a tip the SEC without revealing your identity provided that you are represented by an attorney. This is another advantage of consulting with the Fob James Law Firm. We can help you determine whether you should submit your tip anonymously.
However, even if you choose to reveal your identify the SEC, Dodd-Frank protects the identity of whistleblowers. From our experience, the SEC goes to great lengths to protect the identity of its whistleblowers.
Who Can Be A SEC Whistleblower?
Anyone can.
What Types Of Fraud Can Be Reported To The SEC?
There is virtually no limit to the types of fraud that can be reported to the SEC. Fraud evolves as fraudsters look for new ways to defraud victims and bypass regulators. Below is a list of common types of fraud that whistleblowers report to the SEC:
- Fraudulent sales practices by broker-dealers and financial advisory forms
- Ponzi schemes
- Trading fraud
- Accounting fraud
- Outright theft from investors
- Pump-and-dump schemes and stock manipulation
- Insider trading
How Much Compensation Does A SEC Whistblower Get?
The amount of compensation a whistleblower is awarded is determined by the SEC. The SEC does not publish a formula or disclose its methodology.
However, based on prior awards, it appears the SEC awards anywhere from 10-30% of the total penalty resulting from an enforcement action. The money can be quite substantial since enforcement actions often result in penalties of tens of millions of dollars and sometimes a lot more.
Below are recent whistleblower awards:
- $110 million dollars
- $50 million dollars
- $50 million dollars
- $50 million dollars
- $39 million dollars
- $14 million dollars
- $13 million dollars
Finding The Best Whistleblower Lawyer
To prevail in a SEC whistleblower action and obtain the financial compensation you deserve, your lawyer must build a persuasive case supported by documentation and evidence.
Choosing a law firm that will fight for your rights is critical.
You need a whistleblower attorney who crafts a customized strategy for you and the unique details of your claim.
The experienced whistleblower attorneys of the Fob James Law Firm understand the challenges you are facing.
Your livelihood and anonymity are of the upmost importance to us.
You don’t have to fight this battle alone.
When you trust us to assist you, your lawyer will work directly with you. In fact, we don’t even use case managers.
This allows our whistleblower attorneys to provide the dedicated focus your case deserves. Don’t risk your future by trying to navigate this complex area of the law on your own.
Contact our firm online or give us a call at (866) 837-1010 today to schedule a free consultation with whistleblower lawyer.