After a broker or investment advisor leaves a FINRA member firm, a broker dealer is required to file a Form U5 with FINRA. This form details the broker’s termination. This is the case even if the broker voluntarily terminates his or her employment, or the individual is no longer working…
In three orders, the SEC announced the award of $10.4 million to several whistleblowers for information that led to three different enforcement actions. In the first order, two whistleblowers collected a total of $7.5 million. Both individuals offered important new information for an ongoing investigation regarding fraudulent activity in several…
The U.S. Congress has established whistleblower programs with monetary awards to incentivize individuals to report possible violations of the federal securities laws to the Securities & Exchange Commission and the Commodities Futures Trading Commission. The information reported to these agencies can be past, ongoing, or future fraudulent activities. They include:…
Whistleblowers help maintain the integrity and fairness of U.S. financial markets. They are a vital watchdog and play an essential role in the securities markets. The whistleblower process can be vigorous and draining and comes with risk. Once a whistleblower decides to take a moral stand on what is right,…
Several agencies are involved in regulating the securities industry and enforcing laws governing investment fraud. Each agency has its own staff and set of rules. Our securities & investment fraud lawyers will help you determine the best place to file your whistleblower claim. The Securities & Exchange Commission (SEC). The…
Whistleblowers should proceed from the very start—as soon as they suspect something is amiss—with the strategic guidance, support, and watchful eye of experienced counsel. The whistleblower path is fraught with difficulty and decision-making that cannot be done without the right attorneys to help. For example: Whistleblowers need counsel to help…
The SEC has announced its latest whistleblower awards for two individuals in the same case. The first whistleblower received a bounty of more than $12.5 million after alerting the SEC to an ongoing fraudulent scheme. As a result, SEC staff initiated an investigation and the whistleblower offered continued support to…
A whistleblower whose original information led to an investigation by the U. S. Department of Justice (DOJ) has also received a bounty of $2M from the Securities and Exchange Commission (SEC). Recent amendments to the whistleblower rules mean that DOJ actions, such as deferred and non-prosecution agreements, are now subject…
The Commodities Futures Trading Commission (CFTC) announced that almost $200 million was awarded to a whistleblower who provided information that contributed to an open investigation and led to successful actions by the CFTC, another U.S. federal regulator, and a foreign regulator. A press release from the CFTC stated that the…
Let me be clear: Retaliation protections are a key component of the whistleblower program, and we will bring charges against companies or individuals who violate the anti-retaliation protections when appropriate. —Jay Clayton, Former Chairman, Securities and Exchange Commission It’s axiomatic that whistleblowing only works if people are willing to come…