Since various people and institutions have been violating the federal securities laws, Congress came up with a whistleblower program as a countermeasure. Every whistleblower is entitled to an award that ranges from 10% to 30% depending on the monetary sanctions that the SEC has collected. Other regulatory bodies also chip in wherever possible. Employers cannot also engage in any form of retaliation against their employees who may have come forth to issue evidence of some violations that may be taking place within a company.
To be an eligible whistleblower, you must be in a position to provide information that is entirely original regarding a certain violation that corresponds with the federal securities laws. By utilizing the information that you have provided, the SEC can recover monetary sanctions that amount to more than $1 million. The only restrictions are that an organization or a corporation cannot qualify to be a whistleblower. Although you may not be an employee of the company that has violated the federal securities, you still qualify to be a whistleblower. You should also comply with the whistleblower rules when issuing information about the fraudulent activities of a company to the SEC whistleblower office.
Depending on the SEC tips, an investigation will then be carried out. The information that is present should also be credible so that it may be followed up by the investigative staff. Such information will help in identifying the individuals present in the scheme. Some of the fraudulent transactions will also be unveiled, and some materials will also be used as evidence. If the information does not align with the violation of the federal securities laws, the SEC whistleblower lawyer will forward the case to another body that will handle the case accordingly.
When providing information to an SEC whistleblower attorney, there are various instructions that you should follow. The cases that the SEC handles include; insider trading, misappropriation of securities, pyramid schemes or Ponzi schemes, manipulation of the volume of securities, and other fraudulent activities that involve securities.
A person provides information voluntarily even before the SEC requests it from your attorney. The information that you provide should also coincide with your independent analysis. It should also be original meaning that any other individual has not presented it as evidence.
If the information that you are providing relates to an ongoing case, you qualify to be a whistleblower. The SEC whistleblower can utilize such information to their advantage when investigating a particular corporation that has violated the federal securities laws. If you report the news to your company first, then the corporation engages the SEC, you will still qualify to become a whistleblower. An internal investigation will then commence.