What Violations Qualify for an SEC Whistleblower Award?
The vast majority of individuals who become whistleblowers do so as employees of the supervisor who is committing the securities violation in question.
As such, reporting such a tip can be intimidating, and having a better understanding what to expect and which violations are worth putting yourself at risk for can give you the peace of mind you need to move forward with tipping off the U.S. Securities and Exchange Commission (SEC).
Continue reading to learn more about investment schemes the SEC should be informed of and how you can win a whistleblower award.
Common Types of Investment Schemes
There are seemingly countless different ways that stockbrokers and brokerage firms can defraud investors. However, due to this unfortunate prevalence, some types of securities violations happen far more frequently than others. Some of these include:
- Insider trading
- Prime bank schemes
- Investment fraud
- Stockbroker misconduct
If you believe you have become aware of any of the above types of securities violations, or if you have some other reason to believe that an investment advisor, financial planning firm, or stockbroker has engaged in fraud, you can blow the whistle and possibly win a whistleblower award for your efforts.
Winning a Whistleblower Award
Simply tipping off the SEC isn’t enough to win a whistleblower award. There are stringent criteria that will need to be met, including providing an original tip voluntarily that is valuable to the ability of the SEC to take enforceable action against the violators.
Additionally, the SEC’s monetary sanctions need to consist of more than $1 million in recovered sanctions in order to qualify for a whistleblower award. Fortunately, as an award-winning whistleblower, you’ll be entitled to between 10 and 30 percent of the amount that the SEC is able to recover.
Schedule Your Confidential Tip Evaluation as Soon as Possible
For more information about violations the SEC should be informed of, or to secure legal representation as you prepare to become a whistleblower, get in touch with an experienced SEC whistleblower lawyer from Meissner Associates today.
When you’re ready to schedule your confidential tip evaluation, give our firm a call at 1-866-764-3100 or submit the secured contact form we have included at the bottom of this page.