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SEC Awards More than $300,000 to Two Whistleblowers Who Helped Stop Separate Fraud Schemes

On January 22nd, 2020, the Securities and Exchange Commission (SEC) announced two new whistleblower awards. Financial compensation has been issued to a securities industry insider and an investor who both voluntarily provided information that was used to help halt fraud schemes. Here, our Miami investment fraud attorneys provide an overview of the two latest SEC awards and we explain what you should do if you have information that you want to share with regulators.

SEC Whistleblower Awards: $277,000 and $45,000 

The SEC whistleblower program was created in 2012. The two most recent cases represent the 71st and 72nd awards that have been issued by the agency.

In the first case, a securities industry insider alerted the SEC about a suspected fraud scheme. Using the information provided, regulators were able to take enforcement action and the whistleblower was granted $277,000 in compensation.

In the second case, the whistleblower was a harmed investor, not a securities industry employee. Based on critical information provided by that investor, the SEC was able to stop securities fraud. The investor was issued a $45,000 whistleblower award. 

Four Steps to Take When Disclosing Information to the SEC 

If you have inside information regarding securities fraud or investment fraud, you may be entitled to whistleblower compensation. To get an award, you must voluntarily disclose information to the SEC and your disclosure must, in part, lead to enforcement action. Here are four tips that securities industry insiders can use to protect their rights and maximize their chances of getting a whistleblower award: 

  1. Be Proactive: The sooner you take action, the better. Not only will immediate action help to stop fraud or misconduct as early as possible, but it will also increase your chances of being compensated through a whistleblower award. The SEC has the legal authority to deny whistleblower compensation on the grounds of unreasonable delay.
  2. Make a Comprehensive Disclosure: The Securities and Exchange Commission’s whistleblower office receives more than 5,000 tips annually. Simply due to the volume, not every tip is going to get the same level of scrutiny. By making a comprehensive, well-articulated disclosure, you can dramatically increase the odds that the agency will take action.
  3. Documentation Helps: Evidence is an important part of any successful legal claim—including SEC whistleblower cases. If you have access to any documentation that supports a claim, it will help to provide those records to the agency.
  4. Protect Your Confidentiality: The SEC is committed to protecting the privacy of whistleblowers. Sadly, retaliation against people who report fraud remains a major concern in the industry. To fully preserve your confidentiality, you can make disclosures to the SEC through an attorney.

Call Our Miami Securities Industry Whistleblower Lawyers Today

At ​Carlson & Associates, P.A., our Florida SEC whistleblower attorneys are skilled, experienced representatives for our clients. We will help you navigate the process, protect your legal rights, and advocate for your financial interests. To schedule a confidential consultation with an experienced attorney, please call us today. We represent securities industry whistleblowers in Miami and throughout Florida.

Resource:

sec.gov/news/press-release/2020-15

https://www.carlson-law.net/south-florida-finra-arbitration-panel-holds-merrill-lynch-liable-for-more-than-25000/

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