Our team of attorneys, forensic analysts and investigators are singularly focused on representing SEC whistleblowers with knowledge of violations of the federal securities laws. https://www.securitieswhistleblowerattorneys.com/ has significant experience representing whistleblowers regarding Ponzi schemes, accounting fraud, unlawful trading schemes, conflicts of interest and investment fraud.
Congress established the SEC’s whistleblower program to give incentives for people to report original information or analysis about securities laws violations. If a whistleblower’s information leads to an SEC enforcement action that collects at least $1 million in sanctions, the whistleblower can receive a financial award between 10% and 30% of the funds collected.
The SEC whistleblower program has awarded more than $2 billion to whistleblowers since it was established in 2010.
Submitting A Whistleblower Tip To The SEC Regarding A Ponzi Scheme
A Ponzi scheme is a type of fraud that solicits investments and pays profits to earlier investors with money taken from more recent investors. Ponzi schemes mislead investors by telling them profits are from their business operations, but the business may not exist, or profits are overstated.
Named after con artist Charles Ponzi, these schemes are unsustainable and can only function as long as new money comes in and a significant number of investors don’t withdraw their principal.
Ponzi schemes often promise high returns in a short period of time, involve an uncommon business model, claim to have limited availability, and create a sense of urgency to invest. Ponzi schemes frequently have an affinity fraud aspect, which means that the people involved trust each other due to having something in common, such as belonging to the same ethnic group or religious organization.
A decline in the stock market often prompts investors to withdraw the money invested in a Ponzi scheme, causing it to collapse. That’s how Bernie Madoff’s Ponzi scheme was revealed, which caused investor losses of about $18 billion.
Other Types of Securities or Investment Fraud
There are many types of investment fraud and securities law violations that are not Ponzi schemes, including false filings, accounting fraud, and market manipulation.
To blow the whistle to the SEC on a Ponzi scheme or other fraud, you must have timely, credible, and original information or analysis. Many SEC whistleblowers are insiders who work at the organization that’s committing misconduct.
But being an insider is not a requirement. It’s also possible to conduct an original analysis of publicly available information. If the analysis leads the SEC to investigate and collect a sanction of at least $1 million, the whistleblower can receive an award. A victim of a Ponzi scheme may also submit a whistleblower tip to the SEC.
Retaining Experienced SEC Whistleblower Attorneys
SEC whistleblowers help everyone by notifying the government of conduct that harms the investing public, while also earning a financial award for themselves. Having experienced SEC counsel representing you may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney.
Silver Law Group and the Law Firm of David R. Chase have formed a strategic alliance and jointly have experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team. Our SEC whistleblower attorneys can help you if you have information regarding investment fraud or other violations of the federal securities laws.
Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.