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Work with an Experienced SEC Whistleblower Lawyer
The United States Securities and Exchange Commission (SEC) Whistleblower Program encourages individuals to report fraud and other conduct that violates the federal securities laws. Publicly traded securities in the United States are valued at almost fifty trillion dollars. The enormous size and complexity of our markets and the advisors, brokers, and other intermediaries who function within them make it impossible for any regulatory agency to root out fraud on its own. Therefore, the SEC relies on whistleblowers to help accomplish that monumental task.
Congress created the SEC Whistleblower program to offer financial incentives to whistleblowers for reporting securities violations to the SEC. Under the program, you are a “whistleblower” if you voluntarily provide the SEC with original information or analysis regarding potential violations of the federal securities laws that have happened, are about to happen, or are ongoing.
Your report is voluntary unless you have already been compelled by the SEC or another government agency to provide the information. Your report is original if it derives from your independent knowledge of the facts giving rise to the violation or your own analysis of information that reveals a violation. Information that has already been the subject of public reports or that is entirely derivative of third-party information is not generally considered to be original.
Key Provisions of the SEC Whistleblower Program
Whistleblower reports to the SEC are made on Form TCR. The strength of your submission, including its detail, organization, and analysis, plays a significant role in whether the SEC will investigate your tip. During 2023, the SEC received about 40,000 whistleblower tips. The attorneys at Pugsley Wood attorneys have the experience and connections with SEC regional offices to ensure that your report is as strong as possible and reaches those with an interest in investigating it.
- Monetary Awards: If your report leads to a successful SEC action that results in sanctions that exceed $1 million, you may be entitled to an award of between 10% and 30% of government collections. Pugsley Wood attorneys have an established track record of getting their client’s information to the right people and taking all the necessary steps to maximize the potential for them to receive well-deserved award compensation for reporting violations of the securities or other laws.
- Working With Regulators: Whistleblowers who want to receive the maximum award should cooperate with the SEC to answer questions, provide documents, provide investigative assistance, and help the government to move a case to a successful conclusion. Our attorneys have extensive experience assisting whistleblowers with that process. We strive to make this process as easy as possible for you, protect your interests, and increase your chances of receiving an award.
- Confidentiality Protections: Almost 70% of whistleblowers work or used to work with the companies or individuals they report to the SEC for violating federal securities law. Understandably, those brave individuals do not want their identities to be revealed. The SEC permits parties to submit whistleblower reports anonymously, but a whistleblower who wants to submit an anonymous tip must be represented by an attorney. Preserving client anonymity for as long as possible while still providing the level of information and support needed to qualify for an award requires the judgment and expertise of an experienced attorney. The attorneys at Pugsley Wood attorneys always put the clients’ interests first, helping them understand their rights and obligations as whistleblowers, ensuring that they and their privacy are protected as much as possible.
- Anti-Retaliation Protections: Sometimes those with the best view of fraudulent conduct are reluctant to report the actions they witness out of fear of liability or retaliation, but SEC whistleblowers have numerous protections under the law. In addition to anonymity protections, the SEC whistleblower program bars employers from demoting, harassing, terminating, suspending, or discriminating against an employee in any other way for providing information to the whistleblower program or assisting the SEC in an investigation or proceeding that arises out of the information provided. Whistleblowers who report corporate wrongdoing to the SEC can seek redress if they believe their employers have unjustly retaliated against them for those actions. The SEC can and will bring actions against companies for whistleblower retaliation. In some cases, whistleblowers may sue retaliators in federal court or file complaints with the Department of Labor.
If you are considering blowing the whistle on a company in the public markets or on an advisor or broker that is committing fraud or other wrongdoing, it is in your best interest to speak to an attorney as soon as possible. The whistleblower lawyers at Pugsley Wood attorneys have obtained more than $100 million in SEC awards on behalf of their clients. Our experienced attorneys have many years of experience navigating the complexities of SEC whistleblower cases and have the resources and knowledge to help you understand your rights, assess the strength of your case, and guide you through the reporting process.
Contact us today to schedule a free, confidential consultation.