SEC Whistleblower Lawyer Blog
Although insider trading is clearly illegal, it is hard to detect without the participation of whistleblowers who collaborate with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading (CFTC).
Illegal insider trading occurs when individuals buy or sell securities based on non-public information. Dishonest insiders intend to anticipate market moves and make illegal advantageous trades while outsiders miss out on profits or suffer losses.
Examples of Illegal Insider Trading
Illegal Insider trading comes in various forms. According to the SEC, some of the most common examples are as follows:
- Corporate officers, directors, and employees who trade the corporation’s securities after learning of significant, confidential corporate developments;
- Friends, business associates, family members, and other “tippees” of such officers, directors, and employees, who trade the securities after receiving such information;
- Employees of law, banking, brokerage, and printing firms who trade based on information they obtain in connection with providing services to the corporation whose securities they traded;
- Government employees who trade based on confidential information they learned because of their employment with the government;
- Political intelligence consultants who may tip or trade based on material, non-public information they obtain from government employees; and
- Other persons who misappropriate and take advantage of confidential information from their employers, family, friends, and others.
The Role Of Experienced Counsel In Whistleblower Situations
Whistleblowers provide law enforcement officials with the key information they need to successfully prosecute illegal insider trading. The whistleblower path, however, is difficult and challenging. It requires experienced counsel who can provide strategic advice, support, and a watchful eye as the case proceeds through the complicated enforcement process.
Whistleblowers need counsel to:
- determine whether they have a viable complaint and, if so, how to make an informed decision about whether to proceed;
- gather the evidence and assemble an effective package of materials to maximize success and persuade the government to become involved;
- serve as vigorous advocates to guide them through the process with minimal risk, including protection against possible retaliation and mistreatment;
- vigorously pursue a monetary reward based on the significance of the information and assistance provided to investigators (with the level of protection depending on what and how whistleblowers report);
- prepare an anonymous claim to be filed with the SEC and the CFTC; and
- protect the whistleblower’s identity to the fullest extent of the law.
Experienced Securities Attorneys
Attorneys Scott Silver and David R. Chase are nationally recognized lawyers who specialize in securities and investment fraud. They have extensive experience protecting whistleblowers and representing them in related employment matters. They have a deep understanding of SEC and CFTC matters.
Attorney Scott Silver is co-chairman of the Securities and Investment Fraud Group of the American Association of Justice. He has devoted his career to practicing law in the securities and financial services sectors. He is the author of a highly regarded primer on whistleblower issues.
Attorney David R. Chase represents clients across the spectrum of securities law. He previously served in the SEC’s Division of Enforcement as Senior Counsel. He has extensive knowledge involving SEC enforcement practices. He has also served as Special Assistant United States Attorney in the Economic Crimes Division of the US Attorney’s Office in the Southern District of Florida.
Contact Silver Law Group And The Law Firm Of David R. Chase
If you think you have you qualify as a whistleblower or may need assistance with securities fraud matters, contact us at 1-800-975-4345. You can also reach out online.