ATTORNEY ADVERTISING
Our Attorneys

SEC Whistleblower Lawyer Blog

Our Attorneys Include a Former SEC Prosecutor and Wall Street Defense Counsel

by

In our last post, we reviewed the basics of a special purpose acquisition company (SPAC), also called "blank check companies," to understand why the Securities and Exchange Commission is so concerned about SPACs. This form of investment that wasn't even on people's radar a decade ago is now an SEC enforcement priority. As we explained, while the promises of a massive return from a SPAC may make investors' hearts skip a beat, the very nature of SPACs should give every SEC investigator heartburn. A SPAC is, by definition, a legal shell company with no business operations or assets. The entire company is built on a promise that investors will make a fortune when the first entity (the SPAC) acquires another company.In our last post, we reviewed the basics of special purpose acquisition companies (SPACs), also called “blank check companies,” to understand why the Securities and Exchange Commission is so concerned about SPACs. This form of investment that wasn’t even on people’s radar a decade ago is now an SEC enforcement priority. Continue reading

by

A “blank check company,” more formally known as a special purpose acquisition company (SPAC), was virtually unheard of ten years ago. However, as fewer companies have been able to launch initial public offerings (IPOs) on their own, SPACs skyrocketed in popularity. By 2020, half of all IPOs were tied to a SPAC, and the largest of these included billion-dollar deals. But the rise of SPACs has led to their abuse—taking advantage of investors—and a resulting crackdown by the Securities and Exchange Commission (SEC). Whether you’re working in the financial sectors steering investors to SPACs or more directly involved in a SPAC, you should be aware that they are one of the SEC’s top enforcement priorities. And if you know of SPAC-related wrongdoing, you should consider becoming an SEC whistleblower. In the following posts, we’ll explore SPACs and the SEC’s increasing policing of them.A “blank check company,” more formally known as a special purpose acquisition company (SPAC), was virtually unheard of ten years ago. However, as fewer companies have been able to launch initial public offerings (IPOs) on their own, SPACs skyrocketed in popularity. By 2020, half of all IPOs were tied to a SPAC, and the largest of these included billion-dollar deals. But the rise of SPACs has led to their abuse—taking advantage of investors—and a resulting crackdown by the Securities and Exchange Commission (SEC). Continue reading

by

Congress passed the Dodd-Frank Act on July 21, 2010, in response to the SEC’s failure to identify several Ponzi schemes and other securities fraud that had bilked investors out of billions of dollars and adversely affected the U.S. economy. The Act included provisions to protect whistleblowers who report securities law violations to the Securities and Exchange Commission (SEC) and provided incentives for SEC whistleblowers to come forward. The SEC whistleblower program created by Dodd-Frank has been a resounding success, receiving thousands of tips and reports of alleged securities fraud and other serious matters since its inception. Tips from whistleblowers have led to enforcement actions that so far have yielded more than $2.5 billion in financial remedies, most of which has gone to harmed investors. Whistleblowers have also reaped benefits: In September of 2021, the SEC reported it had issued more than $1 billion in awards (or bounties) for information or assistance in SEC investigations and enforcement actions.Congress passed the Dodd-Frank Act on July 21, 2010, in response to the SEC’s failure to identify several Ponzi schemes and other securities fraud that had bilked investors out of billions of dollars and adversely affected the U.S. economy. The Act included provisions to protect whistleblowers who report securities law violations to the Securities and Exchange Commission (SEC) and provided incentives for SEC whistleblowers to come forward. Continue reading

by

The Securities and Exchange Commission (SEC) has explained that “as investor demand for climate and other environmental, social, and governance (ESG) information soars, the SEC is responding with an all-agency approach” that reflects the risks and opportunities of ESG and climate investing. The agency is putting its policies into practice this year, and investigations are leading to increased enforcement. The SEC’s ESG-Related Institutional Actions The SEC announced the creation of the new “Climate and ESG Task Force” within its Division of Enforcement in 2021. In addition to an emphasis on identifying material gaps or misstatements within firms’ disclosures of climate risks under existing rules, the SEC promised the new task force would be developing initiatives—such as data analysis—to proactively identify ESG-related misconduct. At the same time, the task force would actively “evaluate and pursue tips, referrals, and whistleblower complaints on ESG-related issues.”The Securities and Exchange Commission (SEC) has explained that “as investor demand for climate and other environmental, social, and governance (ESG) information soars, the SEC is responding with an all-agency approach” that reflects the risks and opportunities of ESG and climate investing. The agency is putting its policies into practice this year, and investigations are leading to increased enforcement. Continue reading

by

If you work in any area of commodity futures trading and see or know of wrongdoing within your industry, you could receive a substantial reward for your information. The Commodity Futures Trading Commission (CFTC) has a whistleblower program for commodity trade insiders who can provide material evidence or testimony of company violations involving the Commodity Exchange Act (CEA) and other securities and investment regulations. Here's what you need to know about the CFTC’s whistleblower program and how you can report wrongdoing in your company and obtain a substantial cash reward. A Brief History Of The CFTC’s Whistleblower Program The CFTC was created when Congress, responding to the Ponzi schemes and other securities and investments violations of the past several years, enacted the Dodd-Frank Act. The new program provided incentives to commodity futures traders and other investment traders and brokers who come forward with verifiable evidence of fraud and other offenses. It also provides two significant protections for whistleblowers:If you work in any area of commodity futures trading and see or know of wrongdoing within your industry, you could receive a substantial reward for your information. The Commodity Futures Trading Commission (CFTC) has a whistleblower program for commodity trade insiders who can provide material evidence or testimony of company violations involving the Commodity Exchange Act (CEA) and other securities and investment regulations. Continue reading

by

The SEC announced an award of $279 million to an individual for substantial assistance in an enforcement action. It’s the largest award in the history of the SEC’s Whistleblower program. The previous record for an award was made in October of 2020, when a whistleblower received $114 million. While the whistleblower did not submit the original information that initiated the SEC investigation, the information provided, and assistance afforded, by the whistleblower “expanded the scope of misconduct charged," according to Creola Kelly, Chief of the SEC’s Office of the Whistleblower. Their continued involvement and assistance included numerous interviews and many written submissions that greatly assisted the SEC’s investigation. Two additional whistleblowers were deemed ineligible. Their claims were denied after the SEC determined that neither one submitted information that led to or assisted in any successful enforcement of a covered action.  The SEC announced an award of $279 million to an individual for substantial assistance in an enforcement action. It’s the largest award in the history of the SEC’s Whistleblower program. The previous record for an award was made in October of 2020, when a whistleblower received $114 million. Continue reading

by

In a recent press release, the SEC announced the award of $12 million to two whistleblowers who assisted in an enforcement action against a registered broker-dealer involved in wrongdoing. The first whistleblower received a $9 million bounty after providing a tip that led to the SEC’s investigation. Without this information, the activity at the firm would have been “difficult to detect.” This whistleblower continued to provide information and assistance during the investigation. This included the identification of witnesses and “helping staff understand complex fact patterns and issues related to the matters under investigation.” The first whistleblower suffered hardships while trying to remedy the issues at hand. The SEC used this whistleblower’s information to build its investigative plan and draft initial document requests. The firm in question was ultimately ordered to pay an undisclosed amount in disgorgement of prejudgment interest and a civil money penalty.In a recent press release, the SEC announced the award of $12 million to two whistleblowers who assisted in an enforcement action against a registered broker-dealer involved in wrongdoing.

The first whistleblower received a $9 million bounty after providing a tip that led to the SEC’s investigation. Without this information, the activity at the firm would have been “difficult to detect.” This whistleblower continued to provide information and assistance during the investigation. This included the identification of witnesses and “helping staff understand complex fact patterns and issues related to the matters under investigation.” Continue reading

by

Although we most frequently blog about the SEC and its whistleblower program, other federal agencies also have their own. One of those agencies is the US Commodity Futures Trading Commission (CFTC), which oversees all types of futures markets. This independent agency governs derivative markets, which includes futures, swaps, and some types of options. Begun as a trading exchange for agricultural commodities, the CFTC now oversees a wide variety of commodities, including digital, such as cryptocurrency and foreign exchange markets (FOREX) that deal in foreign currency exchange. There are legitimate ways for experienced investors to delve into digital assets like these. But many are led to believe that they are investing in something digital when they are actually being defrauded. Increasingly, it’s one by one of the oldest methods in the book: fraudulent dating and romance.Although we most frequently blog about the SEC and its whistleblower program, other federal agencies also have their own. One of those agencies is the US Commodity Futures Trading Commission (CFTC), which oversees all types of futures markets. This independent agency governs derivative markets, which includes futures, swaps, and some types of options.

Begun as a trading exchange for agricultural commodities, the CFTC now oversees a wide variety of commodities, including digital, such as cryptocurrency and foreign exchange markets (FOREX) that deal in foreign currency exchange.

There are legitimate ways for experienced investors to delve into digital assets like these. But many are led to believe that they are investing in something digital when they are actually being defrauded. Increasingly, it’s one by one of the oldest methods in the book: fraudulent dating and romance.

Continue reading

by

Following their 2021 appearance, SEC whistleblower attorneys Scott Silver and David Chase were invited back to the ‘Cut To The Chase’ legal podcast to discuss SEC whistleblower program updates and the relevance of the program in recent news, including the collapse of FTX. ‘Cut To The Chase’ is hosted by Miami attorney and entrepreneur Gregg Goldfarb, who discusses legal and public interest news with authorities in their field. Scott Silver and David Chase, who each have their own separate law firms, have formed a strategic alliance to work together representing SEC whistleblowers. Scott Silver is the managing partner of Silver Law Group, a nationally-recognized law firm that helps investors recover losses caused by stockbroker misconduct, fraud, and Ponzi schemes. David Chase formerly worked as an attorney in the SEC’s Enforcement Division and now runs The Law Firm of David R. Chase P.A. where he works on securities and regulatory matters and helps investors recover losses.Following their 2021 appearance, SEC whistleblower attorneys Scott Silver and David Chase were invited back to the ‘Cut To The Chase’ legal podcast to discuss SEC whistleblower program updates and the relevance of the program in recent news, including the collapse of FTX.

Continue reading

Badges
Contact Information
Silver Law Group
11780 W Sample Rd
Coral Springs, FL 33065
Phone: 954.755.4799 Toll Free: 800.975.4345
The Law Firm of David R. Chase, P.A.
1700 E Las Olas Blvd
#305
Fort Lauderdale, FL 33301
Phone: 954.920.7779
By Appointment Only
229 W 36th St 8th Floor
New York, NY 10018
Phone: 212.377.5227
By Appointment Only
4755 Technology Way #205
Boca Raton, FL 33431
Phone: 561.665.8613
ATTORNEY ADVERTISING

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. The contact form sends information by non-encrypted email, which is not secure. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship.

Copyright © 2016 – 2025, Silver Law Group
JUSTIA Law Firm Blog Design