Broker-Dealer Misconduct Whistleblower Lawyer

If you’ve discovered broker-dealer misconduct that’s putting investors or even the brokerage firm itself at risk, a whistleblower attorney can help you submit your tip to the SEC and increase your chances for a reward.

Broker-dealers perform a critical role within the financial industry. In addition to acting as principals and buying securities on their own accounts, they also act as agents by helping investors purchase stocks and make investment decisions.

Unfortunately, not all broker-dealers act lawfully or with the best interests of their clients in mind. When these entities put investors at risk, the Securities and Exchange Commission (SEC) steps in and sanctions them.

The SEC can’t police the financial industry on its own, however. If you know of fraud committed by a brokerage firm, a broker-dealer misconduct whistleblower lawyer from Meissner Associates can help you tip off the SEC so that you can claim a financial reward.

How Do Broker-Dealers Commit Securities Fraud?

Broker-dealers are in a unique position within the securities industry. Because they act as both agents and principals, it’s possible for their financial interests to conflict with that of their clients. The SEC keeps a close watch on these entities for this very reason, and it has a history of sanctioning their misconduct.

These are just a few examples of securities fraud that a broker-dealer can commit:

  • Insider Trading – Whether acting as a principal or an agent, if the broker-dealer makes or facilitates a trade based on material information not publicly available to all investors, it would be an example of illegal insider trading.
  • Fraudulent Blue Sheet Disclosures – When brokerage firms fail to submit accurate and complete trading information to the SEC, the inadequate disclosure can land them in deep legal trouble.
  • Conflicts of Interest – Broker-dealers must act with their clients’ interests in mind when performing the role of an agent. An undisclosed conflict of interest could result in investment advice that harms the unwitting client.
  • Rogue Traders – When acting as a principal, poor internal controls could allow a rogue trader to lose massive amounts of the firm’s money, thereby putting its clients at risk, as well.
  • Inadequate Cyber Security – The SEC requires broker-dealers to maintain adequate cyber security to prevent hacking. This is required both to protect the firm’s client information and to prevent a hacking from destabilizing the firm—and the financial markets by extension.

Report Broker-Dealer Misconduct, Collect a Reward

While the above examples are some common examples of broker-dealer misconduct, they aren’t the only ones. Any financial fraud or inadequate disclosure that represents a risk to investors and the stock market as a whole could be of interest to the SEC.

If you blow the whistle and the resulting SEC investigation recovers sanctions in excess of $1,000,000, you could receive a bounty of between 10 and 30 percent of the money collected. And by submitting your tip through a whistleblower lawyer, you can protect both your identity and your rights.

Become a Whistleblower

A broker-dealer misconduct whistleblower lawyer from Meissner Associates can help you make the most of the information you possess. Arranging a free, confidential tip evaluation is as simple as completing the form below or calling 1-866-764-3100.