An Introduction To Securities Fraud And Whistleblowing

Under the SEC Whistleblower Program,if you provide the Securities and Exchange Commission (SEC) with original information about a security fraud,such as Ponzi schemes,that leads to successful SEC investigation and at least $1 million in sanctions,you may be eligible to receive anywhere from 10% to 30% of the sanctions collected. Below is some more information about securities fraud and whistleblowing.

An Eligible Whistleblower

A whistleblower cannot be a company or any other organization. In other words,it must be a person or multiple people. However,there are limitations and requirements on the ability of certain groups of people to become whistle-blowers. These include compliance personnel,partners,trustees,directors,company officers,accounts and attorneys. That said,a whistleblower does not necessary have to be an American,and they can still work with a [dcl=6683] if not.

The Information Provided

To be an eligible whistleblower,you must voluntarily give the SEC original information about a possible security fraud that has occurred,is about to occur,or is ongoing. In other words,you must provide the SEC with the information before you receive an inquiry from a designated authority,including the SEC. Additionally,the information you give the SEC must lead to a successful enforcement of an administrative or a judicial action,resulting in financial sanctions exceeding $1 million. Original information simply means information based on observation,experiences,or independent knowledge. In other words,you cannot provide information that is already in the public domain. However,you may still be eligible to receive a monetary reward if your own analysis materially provides the SEC with new information.

Monetary Reward Percentage Criteria

The financial incentive ranges anywhere from 10% to 30% of the monetary sanctions collected. However,if there are multiple whistle-blowers,they may have to share the reward. To determine award percentages,the SEC typically considers positive and negative factors including,among others,nature and impact of the information provided,the unique challenges you experienced,and your level of culpability.

Conclusion

If you voluntarily give the SEC original information about a violation of the SEC regulations,you may be eligible to receive a monetary reward. Your odds are improved if you retain the legal services of a[dcl=6683].

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