Are SEC Whistleblowers Penalized for Delayed Reporting?
Having knowledge of securities schemes and other violations of the U.S. Securities and Exchange Commission (SEC) is a burden no one should bear. You likely feel alone and concerned with what you know and how you should proceed.
We’re here to tell you: You’re not alone. In fact, thousands of whistleblowers refrain from reporting their tips because they either don’t know what they should do or they’re afraid of being retaliated against by their employers. In any case, whistleblowers are only penalized in certain situations. Read on to learn more about whistleblowers and delayed reporting.
Internal Compliance Programs and the SOX Act
The Sarbanes-Oxley Act (SOX) was designed for a number of reasons. Most notably, SOX is intended to protect whistleblowers from retaliation and require that all publicly and privately shared corporations have internal compliance programs.
An internal compliance program allows employees to report fraud internally so the corporation can do whatever possible to stop it, as well as report the scheme to the SEC. However, in some cases, employees become known as the one who blew the whistle, leaving them open to retaliatory action. For this reason, many would-be whistleblowers avoid reporting in order to protect themselves.
Why Whistleblowers Might Be Penalized
There is no shame in protecting your own livelihood, but when investors, the public, and even your colleagues are in jeopardy due to fraudulent activity, it’s important that you act.
Although you won’t be penalized for waiting until your affairs are in order before you report your tips to the SEC, if you were knowingly involved in the scheme, you could face penalties from the SEC. Your lawyer will review your tip and your involvement in the securities fraud so you can prepare for whatever comes next.
Work with an SEC Whistleblower Lawyer
To schedule your confidential tip evaluation with a highly trained SEC whistleblower lawyer at Meissner Associates, simply fill out the secure contact form we’ve included below or give our office a call at 1-866-764-3100.