Will the SEC Reduce My Award if I Was Involved in the Misconduct?
As a would-be whistleblower who may have played a part in a possible investment scheme or securities fraud, you may be wondering how your involvement will impact your potential whistleblower award if you report your findings to the U.S. Securities and Exchange Commission (SEC).
There is no sure answer to this question, as the SEC will need to review the circumstances of the fraud you were involved in before determining how your award might be affected. However, there are certain factors that could result in an award reduction.
Continue reading to learn more about when to expect a whistleblower award reduction and how you can increase the amount of your final award.
Personal Misconduct by Whistleblowers
There are generally two different routes that whistleblowers take. First, they were voluntarily involved in an investment scheme or other securities violation and have decided to come forward before the scheme fell apart. Second, they had no idea they were contributing to a securities violation and choose to come forward once they discovered their role in the fraud.
The SEC will not reduce whistleblower awards of those who had no knowledge of their wrongdoing, nor against those who were forced to commit fraud against their will. However, if you participated in a scheme for your own financial gain and only chose to come forward to protect yourself, it would not be unreasonable to assume a whistleblower award reduction.
Increasing the Value of Your Potential Award
The good news is that in either situation, there are steps you can take to increase the value of your whistleblower award. The best way to accomplish this goal is to provide the SEC with evidence that can support your claims and is valuable to the outcome of their investigation.
If you have confidential or internal documents, financial records, recordings, or any other evidence that can help the SEC bring about enforceable action, the value of your tip will increase, as will the amount of your whistleblower award.
Get Help from an SEC Whistleblower Lawyer
When you have participated in a potential securities violation and you aren’t sure what you should do next, contact a qualified SEC whistleblower lawyer at Meissner Associates. You can call our firm at 1-866-764-3100 or complete the secure contact form below to schedule your confidential tip assessment as soon as possible.