Realizing the importance of assistance and information from an insider of a company, the SEC established its whistleblower program.
Whistleblowers play a crucial role in maintaining the integrity of the securities markets in the United States. The SEC whistleblower program was established in 2010 with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The program has proven to be a powerful tool for the Commission, allowing them to identify and prosecute possible fraud and other securities law violations much earlier than would have otherwise been possible.
Whistleblowers who provide original information that leads to a successful SEC enforcement action resulting in sanctions exceeding $1,000,000 can receive a monetary award of between 10% and 30% of the money collected. This incentive has led to an increase in the number of tips received by the SEC and has helped to reduce the harm to investors caused by securities violations.
However, the process of reporting violations to the SEC and receiving an award is not always easy. Whistleblowers face many obstacles, including retaliation from their employers, delays in receiving their awards, and the possibility of having their claims denied by the SEC.
Fortunately, the 2015 landmark decision by the Supreme Court in Digital Realty Trust, Inc. v. Somers has provided whistleblowers with greater protection from retaliation. The Court held that an employee who reports potential securities law violations internally has not done enough to avail himself of the extensive anti-retaliation protections of Dodd-Frank. This means that employees who report violations to their employers are not protected from retaliation under Dodd-Frank, and instead, must report the violations to the SEC.
At our law firm, we understand the challenges that whistleblowers face and can provide the assistance and guidance needed to navigate the whistleblower process successfully. Our attorneys include former SEC attorneys and broker-dealer lawyers, who have the knowledge and experience to help whistleblowers present their information to the SEC and guide them through the process. We offer our services at no cost unless there is compensation to our client.
If you are considering blowing the whistle on securities violations at your company, you must work with an experienced attorney who can help you navigate the complexities of the whistleblower program. Contact us today to schedule a consultation and learn more about how we can assist you in reporting violations to the SEC and protecting your rights as a whistleblower.
Our fee is contingent – a percentage of what our client receives, and if the client receives nothing, our fee is zero.
If you believe you have a whistleblower claim, give us a call at 212-509-6544, or email me at mja@sallahlaw.com
Mark J. Astarita, Esq. is a securities lawyer who represents investors, financial professionals and firms in litigation, arbitration and regulatory matters across the country. He is a partner in the national securities law firm of Sallah Astarita & Cox, LLC and can be reached by email at mja@sallahlaw.com or by phone at 212-509-6544.
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