With the multitude of potential securities fraud violations committed by corporate entities, whistleblowers remain one of the most effective methods in which the Securities and Exchange Commission can identify possible fraud and other SEC violations before significant harm has been inflicted upon investors and the integrity of the United States’ capital markets. Whistleblowers are defined as individuals who disclose information or knowledge he or she has regarding illicit activity within an organization.
To maintain the integrity of United States’ capital markets, the Securities Act of 1933 and the Securities Exchange Act of 1934 were implemented to require that publicly-traded companies provide the investing public with accurate information about the financial and operational conditions of their companies. Securities fraud violations occur when companies disseminate false information that jeopardizes the integrity of U.S. financial markets. Examples of fraud include but are not limited to:
- Fraudulent misstatements
- Intentional concealment
- Insider trading on information not known to the investing public
- Pump-and-dump schemes
Because of the threat posed by these violations and the role whistleblowers can play in diminishing it, the SEC has established the Office of the Whistleblower. The SEC recognizes the difficulty in making the decision to come forward and rewards whistleblowers generously through it whistleblower program for their assistance in safeguarding U.S. financial markets. Just as recent as June 4, 2020, the SEC paid its highest whistleblower award yet with a $50 million award for giving firsthand information about a company’s misconduct. Read more
If you have non – public information about securities fraud contact us by email or using the form below.
Robbins LLP’s whistleblower attorneys have experience representing individuals who expose fraudulent activity and can guide you through the process of filing your claim or submitting your tip so you can hold the wrongdoers accountable and prevent them from causing further harm.