What Is the SEC Whistleblower Program?

The financial markets drive American commerce, including investments by individuals and businesses and acquiring capital for operations. The SEC’s job is to keep Wall Street and financial institutions free of corruption and fraud. However, the SEC often becomes overwhelmed and cannot catch all instances of wrongdoing before it affects investors. That is where whistleblowers come in. A whistleblower is someone who reports fraud against the government – in this case, specifically securities fraud. In these cases, the SEC whistleblower program is designed to encourage individuals to come forward.

The SEC Whistleblower Program

Congress authorized the Securities and Exchange Commission to create a program that provides monetary awards to certain whistleblowers – those who give top-quality tips in cases where the fraudulent person or company incurs over $1,000,000 in sanctions.

Under the program, the whistleblower can receive up to 30% of the sanctions awarded. This whistleblower program was created to encourage individuals to report fraud to help protect the marketplace and investors.

Whistleblower information has led to over $2.5 billion in remedies – money paid back to those injured because of another’s fraud. When the SEC can recover money from fraudulent practices, it returns that money to the investors who were victims of the fraud. The SEC also collects sanctions – fines – in addition to money acquired by fraud.

Since the program began, and as of 2020, the SEC has given $523 million to just 97 people who came forward with tips about financial market fraud.

How a SEC Whistleblower Program Attorney Can Help

The laws governing our market, securities, and investments are complex. The whistleblower laws are also complex. Instead of trying to navigate the legal system yourself, Attorney James H. Shoemaker, Jr., can help you through the legal process and make sure you do not miss critical due dates. He will also ensure you receive your share of the sanctions when the SEC pays out.

Schedule a Consultation in Newport News, VA

Our Virginia whistleblower attorney, James H. Shoemaker, Jr., Attorney at Law, has extensive experience helping individuals throughout Newport News, Hampton Roads, Washington, D.C., and surrounding areas. To learn more about the SEC Whistleblower Program and your rights, speak with Mr. Shoemaker by scheduling a consultation at 757-223-4580.