What Happens When a Whistleblower Participated in the Reported Fraud?

Many would-be whistleblowers fear coming forward to report potential securities violations due to the role they might have played—knowingly or unknowingly—in the fraud they’re considering reporting to the Securities and Exchange Commission (SEC).

Securities fraud can have devastating effects on investors and financial markets alike. Putting a stop to fraudulent activity is crucial to maintaining the integrity of this industry. Fortunately, many whistleblowers are willing to face the potential repercussions, whatever they may or may not be, in order to do the right thing.

Facing Consequences

When a whistleblower comes forward with information that can help the SEC in an investigation, the tip can make a significant difference in the success of the case—whether he or she was involved in the fraudulent activity or not.

The SEC will need to determine whether the whistleblower participated in these violations voluntarily, under pressure from superiors, or unknowingly. The level of participation in the fraud will help the SEC decide whether it is appropriate to proceed with consequences.

In instances where the involvement was minimal, unknowing, or under pressure, it is rare for the SEC to seek sanctions or criminal charges. In the event that a whistleblower has voluntarily participated in a securities law violation but has chosen to divulge this information despite the personal risks, the SEC will usually take that into consideration before taking action.

If a whistleblower has orchestrated the fraud or played a commanding role in the violation, he or she is much more likely to face consequences, including sanctions or jail time.

Reach Out to an SEC Whistleblower Lawyer

For more information about what you can expect if you were involved in a securities law violation but would like to come forward as a whistleblower, contact a qualified SEC whistleblower lawyer at Meissner Associates today.

We can help you avoid prosecution for your involvement and potentially earn an award as a whistleblower. Fill out our secure contact form below or give us a call at 1-866-764-3100 to schedule your free, no-obligation consultation.