Will the SEC Investigate Securities Fraud That Happened a Long Time Ago?

The Securities and Exchange Commission (SEC) gets many reports of securities violations every day. Unfortunately, the commission is not able to conduct an investigation into every tip that comes its way.

Information provided by whistleblowers is prioritized based on the number of people being affected by the fraud, the readily available information, and how serious the violation is to investor funds and financial markets.

If the violation in question occurred years ago or longer, it may still be subject to an SEC investigation if it meets the criteria for prioritization. In some cases, it may even become a top priority case if the fraud has continued undetected for a significant number of years.

Enactment of the Dodd-Frank Act

When the Dodd-Frank Act was enacted in July of 2010, it enabled whistleblowers to obtain monetary awards for coming forward about potential securities violations. Even if the fraud itself began before the enactment of the Dodd-Frank Act, you may be eligible for an award as a whistleblower because your tip will be received after this enactment.

The tip you provide will need to be given voluntarily, without the coercion of the SEC, and it must be original. This means you need to have been the first whistleblower to provide the commission with this tip, and it had to have come to you by way of a source that isn’t public.

In addition, your tip must lead the SEC to be able to take enforceable action against the violating individual or corporation. This action needs to result in recovered sanctions of a minimum of $1 million for you to meet award criteria.

Contact a Securities Fraud Whistleblower Lawyer

Are you interested in blowing the whistle on a potential securities violation that occurred a long time ago? Call an experienced securities fraud whistleblower lawyer at Meissner Associates for help with the process and securing a potential award. You can schedule a free consultation by filling out the form below or giving us a call at 1-866-764-3100.