Category: Blog

One of the many reasons why individuals who are aware of securities fraud are cautious about reporting their tips to the U.S. Securities and Exchange Commission (SEC) is because they aren’t sure whether doing so is ethical. 

It’s certainly an interesting dilemma to be in because you know that a type of fraud or securities violation is unethical, but you may be feeling guilty for coming forward and reporting those scheming individuals to a government agency where they could face significant penalties. 

However, it is important to remember that the types of securities violations that go on within the securities industry and financial markets affect not only investors, but the public in some cases, as well. Continue reading to learn more about why blowing the whistle is so important and how you can go about protecting your identity if you are interested in becoming a whistleblower. 

The Importance of Whistleblowing

There are many different ways that financial advisors, stockbrokers, brokerage firms, and other people in the securities industry can take advantage of investors and other individuals. Some of the most common schemes that occur, and that the SEC is most interested in learning more about, include:

• Money laundering
• Inadequate cybersecurity
• Embezzlement
• Insider trading
• Ponzi schemes
• Foreign bribery
• Stock manipulation
• Accounting fraud
• Unregistered securities

Take Ponzi schemes, for example. In a Ponzi scheme, there are many different investors who are being defrauded by the head of the Ponzi scheme, depending on how large the scheme is. Collectively, you could have knowledge of millions of dollars lost by the investors. Isn’t it unethical not to report such information so the fraudster can be stopped?

Even though you may feel guilty at the thought of reporting securities fraud committed by your colleague, friend, supervisor, or employer, failing to put a stop to it could ruin the lives of those who are being defrauded. 

Anonymous Reporting

Reporting your tip anonymously could be the best way to avoid having anyone know that you blew the whistle. Whether you are worried about losing a friend or being terminated from your job, becoming an anonymous whistleblower could be the best option for you if you have such concerns. 

In order to report your tip anonymously, you need to have legal representation so that your lawyer can report your information to the SEC on your behalf and serve as the person communicating with the SEC for you. The only time your identity will need to become known is if you are entitled to a whistleblower award, at which point the SEC will need to know who you are so they can issue your reward. 

Contact a Qualified SEC Whistleblower Lawyer

If you are interested in learning more about how a highly experienced SEC whistleblower lawyer at Meissner Associates could help you report your tip anonymously, schedule a free and confidential consultation so we can further discuss the details of your case. 

You can fill out the secured contact form below or give our office a call at 1-866-764-3100 when you are ready to move forward with your whistleblower complaint. 

The stock market and securities world is one of the most complicated industries to be a part of, and when someone has information regarding violations of the laws designed to protect investors and the public, they could be awarded for coming forward and reporting their tips to the U.S. Securities and Exchange Commission (SEC) Whistleblower Program. 

Below, we go into further detail about some of the most common types of violations the SEC whistleblower program should know about. Keep in mind that this is by no means an exhaustive list, and you should consult your SEC whistleblower lawyer if you believe you have information surrounding any type of securities violation.

Insider Trading

Insider trading is one of the most frequently seen types of securities violations. It occurs when an investor, stockbroker, or anyone else who stands to gain financially, has inside information or information that has not been made public, and then uses that information to buy or sell on the stock market. 

Insider trading can also be legal in certain situations, however, so you’ll need to speak with your attorney to learn whether you should report concerns regarding insider trading to the SEC. 

Investment Fraud

Investment fraud is also quite common and can occur in a number of different ways. Perhaps an investor was provided with false or misleading information that led them to invest in unsuitable investments, or maybe they unknowingly invested in a pyramid scheme that is sure to come crashing down. In any case, when an investor is wronged in any way by their trusted stockbroker, these violations should be reported.

Ponzi Schemes

Most people have at least heard of Ponzi schemes and know that they are illegal and almost always cause investors to lose money. How a Ponzi scheme works is a fraudster will speak of an investment that is usually non-existent, and encourage investors to do what they do best and invest. 

The schemers will then promise low risks, and high returns all in a short period of time. Using money from new investors, the person running the scheme will then pay back older investors until eventually, they are no longer able to maintain the scheme.

Embezzlement

Embezzlement is yet another scheme that happens all too frequently. Generally speaking, embezzlement occurs when someone who handles an investors portfolio or other assets essentially steals these funds by acquiring ownership of them over time. It can be years before embezzlement is noticed, at which point, investors have lost a significant amount of money. 

Reach Out to an SEC Whistleblower Lawyer

If you have information regarding one of the aforementioned types of securities violations, or if you are aware of another type of investment fraud or scheme and are considering coming forward, get in touch with a highly trained SEC whistleblower lawyer at Meissner Associates. 

We offer confidential tip evaluations to potential whistleblowers across the country. You can take advantage of this opportunity by completing the secured contact form we have included at the bottom of this page or by giving our firm a call at 1-866-764-3100 when you are ready to schedule yours. 

It is more common than you might think for corporations around the world to bribe government officials in other countries so they can do business there. In some cases, these bribes might include money, luxurious gifts, kickbacks, and other incentives that are disguised as being part of the business deal, when nothing could be further from the truth. 

There are even some countries in which the U.S. Securities and Exchange Commission (SEC) frequently deals with these instances of bribery, including Mexico, China, and India, among others. India, in particular, has come under fire in recent years for continually being found to have accepted such bribes in multiple FCPA violations.

Below, we go into further detail about what the FCPA is, these instances of government bribery in India, and what the SEC has done to hold these corporations accountable for the FCPA violations in question.

The Purpose of the FCPA

The Foreign Corrupt Practices Act (FCPA) first came to be in 1977 as a way to prevent certain individuals and companies from bribing government officials in other countries in order to obtain or do business within that country. 

Since then, the FCPA has expanded to include the requirement that corporations maintain transparent internal accounting controls, as these financial statements are able to show when such a bribe has been paid. The FCPA rules apply to any U.S.-based corporation and also applies to foreign companies who have registered securities.

Instances of Recent Government Official Bribes in India

There are several different companies that have been scrutinized by the SEC for making illicit payments and other bribes to government officials in India. Most recently, the popular rideshare service, Uber is being investigated by the Department of Justice for this reason.

Other corporations under scrutiny in recent years include the healthcare company, Alere, Inc.; the IT services company, Cognizant; and, medical technologies firm Stryker Corp, among others. Alere, Inc. and Cognizant were found to have bribed government officials in India in order to do business and were penalized by the SEC for these FCPA violations. 

Cognizant paid $28 million in fines, and Alere, Inc. wound up paying a total of $13 million. Stryker did not have appropriate accounting controls in place and failed to track kickbacks to government officials, and paid a $7.8 million fine. 

As can be seen, the SEC has made it a top priority to combat corruption globally when it comes to the securities industry, financial markets, and FCPA violations.

Speak with an FCPA Whistleblower Lawyer

If you believe you have information regarding violations of the FCPA and are considering reporting your tip to the SEC, contact a qualified FCPA whistleblower lawyer at Meissner Associates. We offer confidential tip evaluations to would-be whistleblowers across the country. 

You can take advantage of this opportunity by giving our office a call at 1-866-764-3100 or by filling out the secured contact form included at the bottom of this page.

When an investor is defrauded in some way, or another securities violation occurs, the investor, colleagues of the fraudster, the company employing the fraudster, and even the public are at risk of substantial financial losses.

One of the most common ways this is done is through parking and steering schemes. In these types of schemes, the investor loses money while the investment advisor or investment planning corporation gains.

Continue reading to learn more about how parking and steering schemes occur, why they are an issue in the first place, and what you should do if you become aware of an ongoing parking and steering scheme.

The Problem with Parking and Steering Fraud

Parking schemes occur when an investment planner or stockbroker arranges trades that will increase returns for one account but result in a loss to other accounts. Steering schemes occur when an investor is steered toward certain investments that will unnecessarily increase the fees the investor pays, thus increasing the fees earned by the advisor and institution.

In either of these types of schemes, the financial advisor and their investment firm stands to gain due to the loss of the investor. Not only is this an unscrupulous business practice, but it’s a securities violation that the U.S. Securities and Exchange Commission (SEC) takes very seriously.

What to Do if You Suspect Securities Violations

Fortunately, just like with the majority of securities fraud, parking and steering schemes typically leave quite the paper trail. As such, if you happen to overhear information regarding either of these types of fraud, stumble upon financial records or other confidential documents, or have another reason to believe that someone is engaging in a parking and steering scheme, you can report your tip to the SEC.

Before you do, you’ll want to retain a highly trained SEC whistleblower lawyer who can help you protect you from retaliation and assist you in remaining anonymous. Your attorney will work to ensure that you meet the whistleblower award criteria so you can be properly rewarded for your efforts.

These criteria include coming forward voluntarily, providing original information, and providing information that results in recovered sanctions that exceed $1 million. Depending on how valuable your tip was to the success of the SEC’s investigation, you could be entitled to an award of up to 30 percent of the total recovered sanctions.

Get Help from an SEC Whistleblower Lawyer

Understanding parking and steering schemes can be difficult, but if you believe you have pertinent information regarding such a scheme and you want to take action by blowing the whistle, an experienced SEC whistleblower lawyer at Meissner Associates can help.

We’ll protect your identity and assist you through the whistleblowing process so you can be awarded the compensation you’ve rightly earned. If you are ready to become an award-winning whistleblower, schedule your confidential tip evaluation today by calling our firm at 1-866-764-3100 or submitting the secured contact form we have provided at the bottom of this page.

When an individual discovers information about a possible securities fraud or investment scheme, it can put them in a tough situation. Do you risk it all and report your tip to the U.S. Securities and Exchange Commission (SEC)? Do you keep quiet and become complicit in the schemes?

Making the decision to blow the whistle isn’t an easy one, but the SEC recognizes this and therefore offers whistleblower awards to those who help put a stop to investment fraud and securities violations.

Before you can win a whistleblower reward, however, you need to meet certain requirements, and just because you tip off the SEC doesn’t mean you’re entitled to such an award. Continue reading to learn more about the whistleblower award requirements and how you can potentially increase the amount of your award.

What You Need to Do to Qualify for a Whistleblower Award

It isn’t enough to simply report a tip to the SEC to win an award. There are strict criteria that you’ll need to meet in order to qualify. First, you need to be the first whistleblower to come forward with that specific piece of information. The information you have must have been obtained through a non-public source, such as internal documents or perhaps through rumors at work.

For this reason, as soon as you become aware of a possible securities violation, you should reach out to your SEC whistleblower lawyer to report your tip. Otherwise, a colleague might have the opportunity to report before you, which will result in your disqualification for a whistleblower reward.

Additionally, the information you present to the SEC must enable them to take enforceable action against the alleged fraudster or corporation. Then, the SEC needs to be able to recover sanctions of at least $1 million. As long as each of these requirements are met, you should be entitled to a whistleblower award.

Providing Valuable Information

You might be wondering how much you should expect to be awarded once you meet the eligibility requirements. There are many factors that come into play when figuring out how much you’re entitled to, but it will nearly always fall between 10 percent and 30 percent of the amount of sanctions recovered by the SEC.

If you are hoping to increase the amount of your whistleblower award, the best thing that you can do is to make sure to provide as much detailed information as possible when reporting your tip.

If you are able to safely obtain confidential documents, financial statements, or other evidence that proves a securities violation, the SEC will consider your tip to be incredibly valuable and instrumental in their ability to put a stop to the fraud at hand. The more valuable your tip is, the greater your award will be.

Consult an SEC Whistleblower Lawyer

When you discover evidence that suggests an investment scheme or other securities violation is taking place, you can tip off the SEC and possibly earn a reward for blowing the whistle.

Work with an experienced SEC whistleblower lawyer at Meissner Associates to protect your identity and maximize the amount of your award. You can schedule your confidential tip evaluation by giving our office a call at 1-866-764-3100 or filling out the secure contact form at the bottom of this page.

The U.S. Securities and Exchange Commission (SEC) is responsible for overseeing the rules and regulations regarding the financial markets and securities world. When a corporation is found to have engaged in fraudulent activities, the SEC can open an investigation and take action against the violating company.

Recently, Marriott International, a hotel corporation with offices located around the world, announced a data breach in their reservation system that could have exposed the personal information of approximately 500 million individuals over the past four years.

Below, we discuss the Marriott hacking scandal in further details, and we explore whether Marriott was in violation of the SEC’s cybersecurity disclosure standards.

The Marriott Hacking Scandal

In 2016, Marriott International acquired Starwood as one of its subsidiary hotels. Then, in September 2018, one of Marriott’s internal security tools discovered a possible breach in the U.S. guest database.

Once Marriott discovered that guest information may have been compromised, they opened an investigation to determine the details of the breach and what information had been stolen.

Their investigation uncovered that a hacker copied guest information from the database and encrypted it. From there, Marriott worked diligently to decrypt the information and find out which guest information had been stolen.

The question of whether Marriott violated the SEC’s cybersecurity disclosure standards comes into play when the company failed to mention the data breach when it filed its recent quarterly report to the SEC—only described certain cyber risk factors that Marriott might be facing.

SEC Cybersecurity Risks and Disclosure

Currently, there is no specific law that requires corporations to disclose these types of hacking incidents. As such, Marriott did not violate the cybersecurity disclosure standards as they are currently written. However, that doesn’t mean that companies shouldn’t be obligated to disclose these hacks and cybersecurity risks.

Failure to report and inform these breaches in data puts guests and investors at risk, particularly if the corporation provides false or misleading information to investors and the public.

Marriott can be further scrutinized due to the fact that the data breach in question was found to have been ongoing within Starwood since 2014, but was not discovered until two years after Marriott acquired its subsidiary.

The SEC is likely to make their standards for cybersecurity disclosures more clear, as the vague nature of the guidelines opens the door for other corporations who have been hacked or face cybersecurity breaches to not disclose these breaches to their investors and impacted consumers.

Get Help from a SEC Whistleblower Lawyer

As can be seen, the cybersecurity disclosure standards of the SEC are a cause for concern, and if you believe that you have information regarding a possible violation of these standards, you can work with an SEC whistleblower lawyer at Meissner Associates to report your tip and possibly win a reward for your efforts.

You can schedule your confidential tip assessment today by giving our office a call at 1-866-764-3100 or by completing the secure contact form we have provided at the bottom of this page.