It Makes Sense To Report Securities Fraud
Blowing the whistle on securities fraud is not only the right thing to do, but you could also be handsomely rewarded. Many people fail to report what they know to be wrong because they are scared of retaliation. However, the U.S. Securities and Exchange Commission (SEC) whistleblower program not only protects people from retaliation but also offers large rewards to encourage more people to come forward. Anyone who reports violations of securities law could walk away with between 10% and 30% of the money recovered.
Since the SEC program was created a decade ago, the SEC has paid out over $900 million to people willing to take the risk to report illegal activity. This year started out particularly strong for whistleblowers. By the end of March, the SEC had already beaten its annual record by awarding nearly $200 million to individual whistleblowers. Additional awards were issued in May and June, indicating not only the momentum the SEC has gained in issuing awards, but also the increase in the instances and severity of securities law violations.
These are some of the securities law violations you could report if you have information:
- Insider trading
- Manipulating the price or volume of securities
- Stealing or misappropriating securities or funds
- Failing to file reports
- Issuing false or misleading statements
- Making fraudulent offers or sales or failing to register them
If you have something to report, it is vital to follow the correct procedures. Failure to do so could lose you the opportunity to claim any reward. The SEC will offer anonymity, but you could easily be compromised if you do not understand the correct way of doing things. An attorney with experience handling these delicate securities fraud cases can help you do things in the right manner.