Short Selling Whistleblower Lawyer
If you have evidence of securities fraud involving short selling, you can work with a short selling whistleblower lawyer and potentially receive a substantial monetary reward from the SEC.
While short selling is not itself illegal under most circumstances, there are some specific types that are not allowed. Additionally, what appears to be legal short selling is sometimes central to a wider securities fraud scheme. In effect, short selling could be a key component of an independent analysis that exposes a fraudster.
If you have such knowledge, a short selling whistleblower lawyer from Meissner Associates can help you determine if the Securities and Exchange Commission (SEC) would be interested in what you know. A successful tip could result in a financial reward worth millions of dollars, making the confidential tip evaluation well worth your time.
What Is Short Selling?
While illegal in many other countries, most forms of short selling are not illegal in the United States. Short selling is a high-risk strategy employed by stock traders that can potentially yield high profits—but at the risk of potentially massive losses.
In a short sale, traders sell a stock that they don’t actually own but have either borrowed or determined that they’ll be able to borrow. This is done because the stock is expected to soon drop in price, allowing it to be repurchased at the lower price. The difference in price becomes a profit for the short seller.
When Is Short Selling Illegal?
There are a number of circumstances in which short selling might indicate illegal activity or become illegal itself. If your information involves any of the following scenarios, you should speak with a short selling whistleblower lawyer as soon as possible:
- Naked Short Selling – This is one of the few situations in which the act of short selling itself becomes illegal. In a naked short sale, the trader either has not actually borrowed the stock in question or has not established that the stock can be obtained in time to close the sale.
- Insider Trading – If the seller has obtained insider information of the stock’s coming price drop, the securities transaction would be illegal and of high interest to the SEC.
- Bear Raid – In this form of market manipulation, investors spread misinformation regarding a company, which then drives the price of the stock down, enabling them to make large profits on short sales.
Contact a Naked Short Selling Whistleblower Lawyer
Because short selling is both common and often perfectly legal, it’s not always cut-and-dry as to whether the SEC would be interested in it. If you believe that you’ve encountered significant naked short selling, or that particular short selling is evidence of other fraud taking place, then you might have information that could result in an SEC investigation. If successful, you could receive a bounty worth 10 to 30 percent of the sanctions recovered, provided that at least $1,000,000 worth of sanctions are involved.
Meissner Associates is responsible for the second-largest reward yet paid by the SEC. We can help you determine if your tip will qualify. For a free and confidential evaluation performed by an experienced short selling whistleblower lawyer, just call 1-866-764-3100 or enter your information into the form below.