Boston False Claims Act Lawyers Shed Light on SEC Whistleblowing Rules
What are the SEC’s whistleblowing rules?
The U.S. Securities and Exchange Commission (SEC) implemented updated whistleblowing rules in 2011 under Section 922 of the Dodd-Frank Act. The purpose of the rules is primarily to reward people who act early to expose SEC violations and who provide significant evidence resulting in a monetary award to the SEC. People who expose violations are known as relators or whistleblowers.
SEC whistleblowers are eligible to receive up to 30 percent of the sanction money awarded to the SEC. Under current rules for receiving an award, a whistleblower must have voluntarily provided the information, and the information must have led to SEC sanctions exceeding $1 million. Informants are excluded from compensation if they were convicted of violating related U.S. laws. The purpose of this restriction is to avoid rewarding those who participated in the fraudulent activity.
Call 1-888-491-9726 or contact us online to arrange a free consultation with a knowledgable whistleblower litigation attorney from Thornton Law Firm, LLP.
Why does the government pay SEC whistleblowers?
Relators with knowledge of possible securities law violations are the government’s primary means of uncovering fraudulent activity. Individuals are often privy to information the SEC could not otherwise easily obtain, and can uncover fraud much earlier than would otherwise be possible.
The SEC is at its core a law enforcement agency. Traditional law enforcement is reactive, meaning investigations into alleged fraud often do not begin until the fraudulent activity is complete and a victim raises a red flag. By giving whistleblowers an incentive to come forward early, the SEC has a chance to identify fraudulent schemes and protect would-be victims.
Why do I need a lawyer to make an SEC whistleblowing claim?
Stepping forward to make a whistleblower claim is a big deal and is likely to result in some blowback from your employer or other persons responsible for the fraudulent activity. The federal False Claims Act protects relators from retaliatory actions from employers. An experienced SEC whistleblower’s attorney can help enforce protections available under the law and minimize any negative aspects of being a whistleblower.
When you contact our SEC whistleblowing attorneys, we take the following actions to protect you and your claim:
- Evaluating the information in your possession
- Conducting additional investigations to maximize your potential reward
- Determining which whistleblower law is most advantageous for you
- Preparing your claim properly and protecting your anonymity
- Enforcing rules prohibiting retaliation against you for stepping forward
Contact SEC whistleblower lawyers for a free consultation
Thornton Law Firm LLP in Massachusetts provides steadfast legal representation to SEC whistleblower clients nationwide. We offer free consultations and excellent client service. We also provide legal services on a contingency-fee basis. You don’t pay if we don’t win your case. Call 1-888-491-9726 or contact us online to arrange a free consultation.