SEC Whistleblower Program and Some of The Lessons to Aspiring Whistleblowers

The SEC whistleblower program is an award driven platform that awards eligible leads ant tips from whistleblowers who provide original information about that is used in the SEC enforcement actions with a civil penalty that amounts to 1 million dollars. The SEC Whistleblower lawyer can receive from 10 percent to 30 percent of the total amount of money that was collected from the enforcement action and other related actions brought by SEC and other related law enforcement institutions. The SEC whistleblower program was enacted by Congress under the Dodd-Frank act to entice holders of insider knowledge help the government to identify and Bering to justice people who have violated the law and participated in financial fraud. With this information, the government can also refund the victims of financial fraud.

Since it’s enactment, the SEC whistleblower program has uncovered a significant number of fraudulent financial companies and schemes as well as putting a stop to ongoing financial fraud. The SEC whistleblower office was opened in 2011. Since then they have received over 22 thousand tips which have led to the recovery of 1.5 billion dollars from financial fraudsters and paid over 322 million to the whistleblowers as well as protection against retaliation from the said criminals. Their offices are located in Washington DC, Maryland, and Virginia where they have lawyers leading in the firm in the representation of whistleblowers within and without the United States. In Washington DC, the SEC whistleblower program covers the violation of the SEC programs, the IRS tax fraud whistleblower reward program, and CFTC whistleblower reward program.

The following are lessons dream from the program.

First, the establishment of a material violation. The investigation into the claim by the SEC lawyers begins by establishing the credibility of the whistleblower. This is done to make sure that the client’s claims have material facts of the violation of the federal financial laws and that they have enough weight to warrant the stated reward. With a workload of over 28 000 tips, it’s difficult to distribute the limited resources in the pursuit of each and every lead even if it might stop the slightest fraudulent activity. This way, the program can focus more on cases that a serious enough by pursuing only the best tips.

Determine eligibility beforehand. Before submitting your tip, it is wise to investigate further because it will not only be incomplete and therefore speculative but might affect the reward percentage. After establishing a material violation, determining the eligibility of the claim for the award. In terms of determining the eligibility of an individual for the award, it is a complex process that might take time.