Whistleblower program is designed for the Public or people to report violations such as monetary fraud market manipulation schemes, insider trading, misleading or false in SEC earnings calls and fillings or the bribery of foreign officials or governments
A person who freely provides the SEC with original information that leads to an enforcement action of more than one million dollars will be awarded between 10 and 30 percent of the total money collected by the SEC. SEC Whistleblower office will determine the percentage paid to the whistleblower based on some other factors. They also consider the level of assistance provided by the Whistleblower.
The SEC Whistleblower Program is designed to enforce the United States securities laws and to compensate individuals who participate with large sums of monetary awards.
Whistleblowers may report crimes anonymously to the SEC. Before reporting it is advisable for them to hire or retain a lawyer that can represent them in the process of submitting a claim. Firstly, a lawyer experienced in securities issues will be able to prepare a disclosure in a way that will make your claim more appealing and easily noticeable to the SEC. The whistleblower may remain unidentified during the investigation by the Securities and exchange commission. The SEC protects the whistleblower after they receive payment by covering or editing the award orders so as to keep the whistleblower’s identity confidential
When a crime is reported by a whistleblower, the SEC will immediately start to investigate the case before contacting the whistleblower or the lawyer. If the tip reported has some merit then the whistleblower will be invited by the SEC for an interview and to provide more documentation. This is the part a lawyer can help the whistleblower to organize and prepare documentation so that it is easily accessible by the SEC. The lawyer will also help to prepare the whistleblower for the follow-up interviews with the SEC lawyers
The issuing of a reward is at the SEC’s discretion. The whistleblower may appeal the reward if he or she is not happy about the size of the reward. It is especially vital to have a lawyer represent the whistleblower during this process.
Since this program started the SEC has paid millions of dollars to whistleblowers. THey SEC has a dedicated fund for Whistleblower payouts.
Whistleblowers are protected by law from retaliation by their employers. No employer may demote, harass, suspend, discharge, threaten, or in any other manner discriminate against, a whistleblower in his or her employment.