SEC Whistleblower Claims

The Securities and Exchange Commission (SEC) Whistleblower Program allows individuals with information concerning potential violations of SEC rule or any fraud concerning the securities industry to present that information anonymously and with significant protections. These individuals can range from former executives of the company to an individual who has experienced the alleged fraud or misconduct. The SEC Whistleblower Program allows the SEC to more efficiently clean up Wall Street by incentivizing individuals who have unique, specific information concerning insider dealings or other confidential information. The whistleblower process can be intimidating. Our experienced SEC attorneys present the SEC whistleblower application in the best format, increasing the likelihood of the SEC pursuing an action.

The SEC implemented the Whistleblower Program when the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2011 (the Dodd-Frank Act). The Whistleblower Program was adopted per Section 922 of the Dodd-Frank Act. The Whistleblower Program was primarily intended to incentivize and reward individuals who acted swiftly and early to expose violation of SEC rules and who provided significant evidence that helped the SEC bring successful cases.

The Whistleblower Program helps the SEC find and sanction violators of securities rules. To date, the Whistleblower Program has resulted in almost $1 billion in financial remedies, and over $158 million has been paid to whistleblowers. Due to the vast amount of Wall Street firms and other businesses and organizations that operate in the securities industry, assistance and information from whistleblowers can be powerful tools for the SEC to bring wrongdoers to justice.

The SEC created the Office of the Whistleblower to administer the SEC Whistleblower Program. This office is where the whistleblower claim begins.

A whistleblower must voluntarily provide the SEC with original information that leads to the successful enforcement by the SEC and in which the SEC obtains monetary sanctions totaling more than $1 million. Often times, this information must be unique, confidential or inaccessible to the public.

If the information is original and leads the SEC to obtain an award of more than $1 million, the whistleblower is then awarded between 10 to 30 percent of that amount. The range of potential award amounts given to a whistleblower depends on the significance of the information provided.

The same rules apply to reporting to the Commodity Futures Trading Commission (CFTC), meaning a whistleblower can report to the CFTC and potentially earn a bounty if it sanctions an individual or entity if the original information leads the SEC to obtain an award of more than $1 million.

Throughout the process, confidentiality is placed at a premium. The whistleblower’s identity is never disclosed and there are rules dealing with retaliation against the whistleblower. The SEC takes whistleblower claims seriously and works to protect the whistleblower’s identity.

Scott L. Silver, managing partner of the Silver Law Group, was an early proponent of the whistleblower legislation and authored a primer on the SEC Whistleblower Program.

Silver Law Group has Martindale Hubbell “AV” Preeminent Peer Review™ rated lawyers committed to the protection of whistleblowers throughout the whistleblower claim process. Our legal team includes former defense attorneys and government prosecutors now working to protect SEC Whistleblowers.

We are committed to the prosecution of your whistleblower claims which arise from violations of the SEC and CFTC industry rules and regulations. Confidentiality along with achieving and maximizing a whistleblower award are our primary goals. Contact our firm for a free consultation.