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What Are the Different Types of Whistleblowing?

What Are the Different Types of Whistleblowing?

When you have information regarding different types of fraud or misconduct within the securities industry, you may be unsure of what to do with that information. Do you keep it to yourself or do you do something about it? 

If you choose to act and report your findings to the appropriate individuals and entities, you are becoming a whistleblower. But there are also several different types of whistleblowing. Read on to learn more about cyber whistleblowing, internal whistleblowing, and external whistleblowing.

Cyber Whistleblowing

Cyber whistleblowers are whistleblowers that report information regarding security breaches, bitcoin schemes, fraud involving cryptocurrency, and a wide variety of other cyber crimes. In some cases, an employee of a company will discover the issue in question and then have the option of reporting ir internally, externally, or both. 

Other times, hackers become whistleblowers after incidentally discovering a breach or scheme and then will report the information to the U.S. Securities and Exchange Commission (SEC) or other agency that handles cyber crimes. 

Internal Whistleblowing

Under the Sarbanes-Oxley Act (SOX), all companies within the securities industry are required to have an internal compliance program that allows potential whistleblowers and other employees to report tips regarding fraud or misconduct to the company internally. 

When a report comes in about a potential securities violation, such as insider trading or an alleged Ponzi scheme, is known as internal whistleblowing. In most cases, internal whistleblowers have the right to report their tips anonymously through a hotline so their identity is protected. 

External Whistleblowing

External whistleblowing occurs when someone who has information regarding securities violations reports their information to the appropriate government agency. Generally speaking, this would be the SEC, the Commodity Futures Trading Commission (CFTC), the Financial Industry Regulatory Authority (FINRA), or even the Department of Justice (DOJ). 

Whistleblowers who report tips externally can protect their anonymity by retaining legal representation. For employees who fear demotion, termination, harassment, or other forms of retaliatory action, anonymity can be critical for both internal and external whistleblowing. 

A whistleblower who comes forward can also win a whistleblower award if the information they provide leads to enforceable action and recovery of more than $1 million in sanctions, among other requirements. 

External whistleblowers may also report their tips to organizations that don’t conduct investigations, such as the media, but they will not be entitled to an award and may not be protected under the Whistleblower Protection Act. 

If you have a tip and are interested in becoming a whistleblower, reach out to a lawyer as soon as possible.

Contact an SEC Whistleblower Lawyer

Before you report any information regarding securities violations, reach out to an experienced SEC whistleblower lawyer at Meissner Associates so you can protect your identity and have legal representation throughout the reporting process. 

Schedule a confidential tip evaluation by calling 1-866-764-3100 or completing the quick contact form below.

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Is Whistleblowing Ethical?

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. 

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What Is the SEC Whistleblower Award Process?

Deciding to blow the whistle can be a difficult decision to make, because you could be negatively impacted by the events that follow. Because the U.S. Securities and Exchange Commission (SEC) understands how difficult it is to take action against a company or organization for fear of reprisal, they offer whistleblower awards.

People might not blow the whistle if they don’t receive a whistleblower award because they could lose their job or be retaliated against for blowing the whistle. These brave individuals deserve to receive a financial award for being brave enough to report illegal behavior that a company or organization is engaging in.

If you’re unsure how the SEC whistleblower award process works, read on.

How to Get an Award for Blowing the Whistle

In order to get an award for blowing the whistle, you must report securities law violations to the SEC. You should be sure to follow the rules that relate to reporting violations.

Many people consult an SEC whistleblower lawyer to be sure they don’t make mistakes when reporting a violation. You want to make sure you report the information in the appropriate manner so you don’t miss out on the financial award.

Who Can Receive a Financial Award?

Not every person who blows the whistle can receive a financial award. Your tip must result in an action being taken against the company, corporation, or agency that was engaging in wrongful behavior. The action must result in a financial sanction against the company of at least $1 million.

You should work with your attorney to monitor your case to see whether it results in a financial sanction that meets or exceeds the minimum financial sanction criteria. If you believe you are eligible for an award, you will have to apply for an award within ninety days of the case being posted.

Receiving an Award

Although you can receive an award for blowing the whistle, there are some factors the SEC considers when determining the amount your award should be.

For instance, if you participated in the securities law violation, your award could be reduced. If you delayed in reporting information to the SEC, your award could be reduced. Additionally, if the information you provided to the SEC was extremely helpful, your award could be increased.

Get in Touch with an SEC Whistleblower Lawyer

A lot goes into blowing the whistle, and a lot must be done after in order for you to receive a financial award for the information you provided to the SEC. Working with a lawyer can help you in a number of ways. Your lawyer can guide you through the process of reporting a securities law violation and they can help you apply for an award.

Your lawyer will also safeguard your identity and protect your rights as a whistleblower. Get in touch with an SEC whistleblower lawyer to learn more about the SEC whistleblower award process. You can reach Meissner Associates through the contact form below or you can call 1-866-764-3100.

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How Long Does an SEC Whistleblower Case Take?

How Long Does an SEC Whistleblower Case Take?

One of the most commonly asked questions that potential whistleblowers have is, “How long does a whistleblower case take?” Individuals who are considering blowing the whistle want to know how long they can expect to be tied up in interviews and discussions with the U.S. Securities and Exchange Commission (SEC) before they make the decision to come forward—and rightfully so. 

Unfortunately, every whistleblower case is different. Various factors influence the length of both an SEC investigation into potential securities violations, and the time between the completion of the SEC’s investigation and the issuance of a whistleblower award. 

Continue reading to learn more about the different types of securities violations the SEC is interested in investigating and how to strengthen your SEC whistleblower case.

Types of Securities Violation

The length of the SEC’s investigation will largely depend on the type and size of securities violation. Several examples are included below: 

Depending on how many investors have been wronged, how many brokers are involved in the scheme, and how involved the brokerage firm or financial planning institution was, SEC investigations can go on for years. 

Beyond that, once the SEC has completed their investigation, it can take some time for them to recover imposed sanctions and then determine how much you are entitled to, if anything.

How to Strengthen your SEC Whistleblower Case

You can do your part to decrease the length of the SEC’s investigation by providing the SEC with as much information as possible. Telling your side of the story likely won’t be enough, however. 

You’ll need to be prepared to turn over confidential documents, internal documents, financial transactions and records, and any other evidence that clearly supports that there was a securities violation if you hope to speed up the process. 

It will also be helpful to your case if you come forward sooner rather than later. As soon as you have even the slightest idea of an SEC violation, your best option is to come forward. Not only can the SEC get started on their investigation more quickly, but you reduce the risk of someone else coming forward before you have the opportunity to, which could seriously impact your ability to win a whistleblower award.

Get Help from an SEC Whistleblower Attorney

If you have uncovered information about potential securities violations and are considering bringing your tip forward, a highly trained SEC whistleblower lawyer at Meissner Associates can represent you throughout the process. To schedule a confidential tip review at our firm, call 1-866-764-3100 or fill out the brief contact form at the bottom of this page.

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What Kinds of Violations Qualify for the SEC Whistleblower Program?

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. 

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SEC Cracks Down on US Companies for Government Bribery in India

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.

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How Does the SEC Determine the Amount of a Whistleblower Award?

When you take a risk as big as becoming a whistleblower, you should be awarded accordingly if the U.S. Securities and Exchange Commission (SEC) is able to impose consequences on the person or corporation who is responsible for engaging in fraudulent activity. 

Although it is certainly the right thing to do in coming forward with any pertinent information you might have, you’ll also likely be wondering how much you can expect to be awarded. This is a difficult question to answer, particularly as this information won’t be available until the SEC is able to recover their monetary sanctions. 

However, you can certainly educate yourself about how the SEC will go about calculating the amount of your whistleblower award. Read on to learn more about what a whistleblower tip is worth, and why the amount of monetary sanctions recovered will make a difference in the outcome of your case. 

The Value of a Whistleblower Tip

There are several different requirements that will need to be met in order to qualify for a whistleblower award, and each of them need to be fulfilled in order to obtain an award. The most important one has to be the value of your tip. 

The more valuable your information is to the success of the SEC’s investigation into the investment fraud or securities violations in question, the more you can reasonably expect to be awarded. 

If you are able to provide the SEC with internal documents, financial statements, confidential information, and other physical evidence that can establish the wrongdoing, you’ll have provided invaluable information to the SEC as they conduct their investigation. 

How Much Was the SEC Able to Recover?

The SEC’s claims review department will be responsible for determining your preliminary whistleblower award. This includes figuring out how valuable your tip was to the eventual success of the case. Once this has been established, you’ll need to be sure that you’ve met the other qualifying criteria. 

This includes reporting your tip voluntarily, your tip being considered original, and of course, the SEC needs to be able to impose monetary sanctions against the fraudulent individual or company. If all of these conditions have been met, you will be entitled to somewhere between 10 percent and 30 percent of however much the SEC is able to recover. 

The more documentation and evidence you are able to provide to the SEC, the closer you’ll get to the 30 percent mark, and though this may seem like a small difference, if the SEC was able to recover, say $25 million, you could be awarded as much as $7.5 million or as little as $2.5 million. As can be seen, the value of a whistleblower tip significantly influences the outcome of a whistleblower award. 

Contact a Qualified SEC Whistleblower Lawyer

Would-be whistleblowers across the nation can speak with an experienced SEC whistleblower lawyer at Meissner Associates, free of charge, to discuss the information they have, what their next steps should be, and what to expect from a whistleblower award during their confidential tip review. 

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

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What Is a Parking and Steering Scheme?

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.

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Reporting Securities Violations to the SEC: Why Timing Matters

Finding out that someone you know is engaging in fraudulent activity can put you in a tough position. Do you risk it all to expose their wrongdoing, or do you remain silent and allow them to continue to put you and those they are ripping off in jeopardy.

If you choose to come forward and report your findings to the U.S. Securities and Exchange Commission (SEC), it’s important that you do so as soon as possible.

There are several reasons why timing matters when you report securities violations to the SEC, and they all have an impact on whether you will be entitled to a whistleblower reward for your efforts in putting a stop to the schemes in question.

Voluntary Reporting

One of the criteria for becoming an award-winning whistleblower is that you come forward to report your tip voluntarily. This means that you should come to the SEC with your information before you become aware of an SEC investigation into the matter.

At that point, the SEC will begin conducting interviews, and if they request to speak with you before you have had the opportunity to report your tip, you could lose out on your chance to win a significant whistleblower reward.

Tips That Are Original

Timing makes a big difference when reporting your tip to the SEC because you’ll need to be the first person to come forward with this particular piece of information. As part of this, the information that you have needs to have come from a confidential source such as through an internal document or some other source that hasn’t been made public.

With that in mind, if another person who was prepared to blow the whistle beats you to the punch, so to speak, they will be the one who could win a whistleblower award.

Other Requirements to Win a Whistleblower Award

Now that we have reviewed why it’s important to report your tips as soon as possible, we can further explain the other criteria you’ll need to meet in order to win a whistleblower award.

Once you have met the aforementioned requirements and the SEC has begun investigating, they need to find your tip to be valuable to their investigation. So valuable, in fact, that they must be able to impose monetary sanctions amounting to $1 million or more.

The good news is that based on how valuable your tip was to the success of the SEC’s investigation, you could be entitled to between 10 and 30 percent of the recovered sanctions.

Contact an SEC Whistleblower Lawyer

If you have information about potential securities violations and you aren’t sure what you should do next, consult a renowned SEC whistleblower lawyer at Meissner Associates today.

We’ll schedule a confidential tip review so we can better advise you about how to proceed. You can give our office a call at 1-866-764-3100 or fill out the secured contact form we have included at the bottom of this page so you can set up your first appointment.

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sec whistleblowing in silicon valley

When an individual or corporation is engaging in securities fraud, and you become aware of such violations, you might be able to win an award if you come forward and report your tip to the U.S. Securities and Exchange Commission (SEC).

Becoming a whistleblower isn’t easy, but it’s the right thing to do when investors, your colleagues, and the public are at risk. Below, we discuss why whistleblowers often don’t report the information they have, and what criteria you need to meet to be eligible for an award.

Why Whistleblowers Don’t Come Forward

Often, when an individual has blown the whistle, their employer finds out, and the whistleblower is often subjected to retaliation. Retaliatory action might consist of the creation of a hostile work environment, demotion, harassment, intimidation, termination, and slander of the whistleblower’s professional reputation.

Fortunately, there are a number of whistleblower protections, including the Dodd-Frank Act and Sarbanes-Oxley Act, which strictly prohibit employers from retaliating against employees they suspect of whistleblowing.

In fact, if your employer does retaliate against you, you can file a claim against them that will allow you to recover damages, including double back pay, damage to your reputation, emotional distress, and a reinstatement to your position, if you were terminated.

What’s more, you have the option of reporting your tip anonymously if you are represented by an SEC whistleblower lawyer. This way, the chances of your employer finding out you blew the whistle are minimal. Eventually, if you are going to be issued a whistleblower award, the SEC will need to know who you are so they can provide you with your award.

You Could Win an Award

Before you can be eligible for a whistleblower award, you’ll need to meet very specific requirements as outlined by the SEC. They include the following:

  • Your tip must be given voluntarily.
  • The information you provide must be original, meaning you discovered your tip from a non-public source.
  • The SEC must be able to take enforceable action against the violator.
  • The sanctions recovered by the SEC must be greater than $1 million.

Once you meet the above criteria, you will be entitled to anywhere between 10 and 30 percent of the recovered sanctions, depending on how valuable your tip was to the success of the SEC’s investigation. For example, if the SEC is able to recover $25 million and they wouldn’t have been able to without you, you could receive up to $7.5 million as your award.

Your SEC whistleblower lawyer in Silicon Valley will review the details of your tip to determine what you can expect to happen moving forward, and whether you’ll be entitled to an award.

Consult a Silicon Valley SEC Whistleblower Lawyer

If you’re ready to take a chance and blow the whistle on fraudulent activity within your workplace, you can report your tip to the SEC anonymously when you work with an experienced Silicon Valley SEC whistleblower lawyer at Meissner Associates.

All prospective whistleblowers can schedule a confidential tip assessment today by completing the secure contact form we’ve included at the bottom of this page or by calling our office at 1-866-878-9123.