All You Need to Know about the SEC Whistleblower Program

By June 20, 2020 No Comments

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Congress created the whistleblower program with the primary goal of paving the way for individuals to report any possible violations that relate to the federal securities laws that apply to the SEC. Money incentives were being offered to such individuals as an award. A good SEC whistleblower law firm also ensures that employers don’t try to retaliate against their employees by providing some information that may discredit them in any manner.

A legitimate whistleblower is an individual who will provide some original information to the SEC about some violations that may have taken place initially. Only individuals can act as whistleblowers. Organizations and companies are restricted to act as whistleblowers. You may provide any information regardless of whether you are an employee in a specific firm.

The SEC whistleblower office will then carry out an investigation depending on the information that has been provided. The SEC tips are usually forwarded to the investigative staff in an instance whereby there is credibility, and the information is specific. However, an SEC whistleblower attorney cannot handle a case whose information does not correspond to the federal securities laws. In such cases, they may refer you to another agency that will handle the matter accordingly. Some of the cases that the SEC handles are such as;

  • Insider trading.
  • Pyramid schemes and Ponzi schemes.
  • Manipulation of the price of securities.
  • Bribing foreign officials.
  • Misappropriation of securities.
  • Fraudulent activities involving public pension plans.
  • Abusive short selling.
  • Providing misleading information about a company.
  • Insider trading.

The voluntary provision of information involves complying with the necessary authorities before your lawyer is consulted. When providing any information, you must make sure that it is original which means it should come from your independent evaluation. If another person has provided the data in the past, it cannot be classified as the original.

You still qualify for the money incentives even if you work in a corporation that has an internal compliance process. You will issue a report internally and the SEC will work with the findings that they have been issued. The percentage that you will be granted is dependent on your rate of participation in the program.

To qualify for the awards issued by the whistleblower program, you must submit the relevant information through complaints and referrals, online tips, as well as questionnaires. You can also fill the TCR form and send it to the SEC office through mail or fax. According to the OWB, it is advisable to submit the tips electronically using the online portal provided by the commission. The TCR system was also updated recently, and it is more user-friendly. When you use the online portal, you will receive acknowledgement and a confirmation number. However, if you cannot access a computer quickly, you can also submit the information in a hard copy format.

Author Kevin Urrutia

Kevin is the founder of Voy Media. Kevin is an avid outdoorsman and nature lover; when not in the concrete jungle of New York, he can be found trying to explore a real one. Follow Kevin on Twitter Voy Media has been named the #1 Facebook Marketing Agency and one of the fastest growing marketing agencies in NYC. Voy Media crafts custom digital marketing strategies for clients, including services in Facebook Ads, Google Ads, Amazon Ads, email marketing and more.

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