The stock market and securities world is one of the most complicated industries to be a part of, and when someone has information regarding violations of the laws designed to protect investors and the public, they could be awarded for coming forward and reporting their tips to the U.S. Securities and Exchange Commission (SEC) Whistleblower Program.
Below, we go into further detail about some of the most common types of violations the SEC whistleblower program should know about. Keep in mind that this is by no means an exhaustive list, and you should consult your SEC whistleblower lawyer if you believe you have information surrounding any type of securities violation.
Insider trading is one of the most frequently seen types of securities violations. It occurs when an investor, stockbroker, or anyone else who stands to gain financially, has inside information or information that has not been made public, and then uses that information to buy or sell on the stock market.
Insider trading can also be legal in certain situations, however, so you’ll need to speak with your attorney to learn whether you should report concerns regarding insider trading to the SEC.
Investment fraud is also quite common and can occur in a number of different ways. Perhaps an investor was provided with false or misleading information that led them to invest in unsuitable investments, or maybe they unknowingly invested in a pyramid scheme that is sure to come crashing down. In any case, when an investor is wronged in any way by their trusted stockbroker, these violations should be reported.
Most people have at least heard of Ponzi schemes and know that they are illegal and almost always cause investors to lose money. How a Ponzi scheme works is a fraudster will speak of an investment that is usually non-existent, and encourage investors to do what they do best and invest.
The schemers will then promise low risks, and high returns all in a short period of time. Using money from new investors, the person running the scheme will then pay back older investors until eventually, they are no longer able to maintain the scheme.
Embezzlement is yet another scheme that happens all too frequently. Generally speaking, embezzlement occurs when someone who handles an investors portfolio or other assets essentially steals these funds by acquiring ownership of them over time. It can be years before embezzlement is noticed, at which point, investors have lost a significant amount of money.
If you have information regarding one of the aforementioned types of securities violations, or if you are aware of another type of investment fraud or scheme and are considering coming forward, get in touch with a highly trained SEC whistleblower lawyer at Meissner Associates.
We offer confidential tip evaluations to potential whistleblowers across the country. You can take advantage of this opportunity by completing the secured contact form we have included at the bottom of this page or by giving our firm a call at 1-866-764-3100 when you are ready to schedule yours.