SEC Whistleblowers – How to Report Fraud to the SEC Whistleblower Office

The Securities and Exchange Commission (SEC) created an Office of the Whistleblower to take advantage of the knowledge and firsthand experience of individuals who become privy to fraud and other violations of securities laws. With the help of whistleblowers, the SEC can prosecute misconduct that law enforcement otherwise may have otherwise been unable to discover. According to the SEC’s website, the program “allows the [SEC] to minimize the harm to investors, better preserve the integrity of the United States’ capital markets, and more swiftly hold accountable those responsible for unlawful conduct.”

Among other misconduct, the SEC identifies the following list of key issues a whistleblower may report on:

• Fraudulent or unregistered offer or sale of securities, including things like:
  • Ponzi schemes
  • Pyramid schemes
  • High-yield Investment Programs
• Theft or misappropriation of funds or securities
• Manipulation of a security’s price or volume
• Insider trading
• False or misleading statements about a company (including false or misleading SEC reports or financial statements)
• Failure to file required reports with the SEC
• Bribery of, or improper payments to, foreign officials
• Fraudulent conduct associated with multiple securities transactions or public pension plans
• Improper activities of FINRA brokerage firms

Congress authorized the SEC to provide monetary awards to eligible whistleblowers who provide high-quality and original information that leads to an SEC enforcement action in which over $1,000,000 in sanctions is ordered. Whistleblower awards range between 10% and 30% of the money collected by the SEC.

The SEC strongly encourages individuals who believe they have tips about fraud or other wrongdoing to submit a TCR (Tips, Complaints, and Referral) complaint form through the SEC’s website. The TCR form includes answering general questions about the misconduct, as well as space for the whistleblower to describe the fraud in detail in narrative format. Our experienced SEC and investment fraud attorneys know how to report fraud to the SEC including the most relevant facts and law to help maximize the chances that the SEC will investigate.

While anyone can submit a tip to the SEC, in order for the SEC to investigate misconduct, the TCR form must describe the fraud in a clear, detailed fashion that underscores the securities laws that were violated and that provides sufficient proof so that tip is considered credible. This can be accomplished by working with an experienced securities lawyer who can identify securities violations and connect them to specific instances of proof offered by a whistleblower. A whistleblower attorney can also assist a whistleblower in navigating the SEC’s investigation process, should the SEC choose to follow up on a tip.

Since 2011, the SEC has received more than 33,000 tips, only a miniscule number of which garner the SEC’s attention, and even fewer of which result in meaningful SEC action. Given that the SEC only has limited resources, it is important to consult with an experienced whistleblower attorney prior to filling out a form TCR.

Our attorneys have significant experience working with the SEC and our SEC attorneys can draft a whistleblower tip that grabs the SEC’s attention. Our whistleblower attorneys will craft a whistleblower claim that offers the SEC the facts and the law it needs to determine if there is a material violation of the securities laws which it should further investigate. We work with you to help make sure you have the best chance of recovery for reporting to the SEC whistleblower office.

Scott Silver, managing partner of Silver Law Group, has substantial experience representing whistleblowers and has even authored a primer on navigating the SEC whistleblower program. He has been advocating for investors and employees who seek to expose fraud and misconduct for decades.

If you have information that could qualify you as a whistleblower, contact Silver Law Group today for a confidential consultation by calling (800) 975-4345 or emailing ssilver@silverlaw.com. Our team of lawyers and case investigators is standing by to investigate your whistleblower claims.

We work with some of the best whistleblower lawyers in the nation. We work together to give our clients the best opportunity to maximize their SEC whistleblower claim. We frequently update our website at secwhistleblowerlawyers.net with recent information from the SEC Whistleblower office.