Financial and Securities Fraud Lawyers
Financial fraud is any act that causes people to purchase or sell a stock based on false or misleading information, or who violate securities laws. Whistleblowers may report many different types of securities fraud, from outright embezzlement to sophisticated stock market manipulation infringing the rules created to protect investors and the general public.
As a whistleblower, your rights are protected. Contact Whistleblowers International at (800) 689-8552 or by submitting an online contact form to learn more.
Financial and securities fraud directly harms investors and companies in the public and private sectors by manipulating stock prices. Today, it is estimated that malicious schemes cost the markets between $10‐40 billion annually. Those who illegally manipulate, buy, and sell prices affect the 200 million individuals who trusted their savings in this type of investment, and directly or indirectly rely on them through their pension funds and retirement accounts.
SEC Protections for Whistleblowers
As the responsibility held by unscrupulous corporations in the 2008 market crisis became more widely known, public and government officials called for increased regulations and policing of Wall Street. In response, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. This Act introduced comprehensive regulatory changes and consumer protection tools aimed at uncovering fraudulent schemes before they cause substantial economic damage.
One of the Act’s primary objectives was to detect potential fraudulent behaviors by incentivizing individuals to report illegal activity through whistleblowing. The Act created the Securities and Exchange Commission (SEC) Whistleblower Office, which granted protection, full anonymity, and large monetary rewards to all relators that help the Government bring these criminals to justice.
Today, the SEC Whistleblower Office remains a program that protects and grants anonymity and rewards to those who come forward to expose financial and security frauds.
Securities Fraud Under the SEC Whistleblower Program
To date, banks and other financial institutions continue to operate with little effective government oversight. The U.S. government has increasingly relied on whistleblowers to help detect and prosecute fraud, and it has created several programs and legislation to ensure they would be handsomely rewarded. With the current legislation, an attorney can be hired to file a SEC claim anonymously and, if the case is successful, receive a monetary award based on the money recovered by the authorities. The percentage ranges from 10 to 30 percent of the monies collected based on the information provided (so it may reach up to several millions of dollars), with a minimum payment of $100,000.
Types of Fraud Covered by the SEC
There are several types of SEC fraud that can be recovered under the DFA, IRS Whistleblower Statute, and False Claims Act. Typically, only employees are in a position to identify an ongoing scheme (insiders); however, anyone with credible information can report it, including third parties who uncover illegal activities through independent investigation. Some examples of these unlawful practices include:
Corporate disclosure fraud & false financial statements
Filing false or misleading financial statements usually involves engaging in accounting practices that create the appearance of increased earnings and revenue. Another common scam includes forging business transactions that generally have no practical purpose other than to manipulate revenues, expenses, earnings and/or losses.
Insider trading occurs when individuals with nonpublic information use their knowledge to profit on possible stock fluctuations as soon as the information is disclosed. For example, an insider who knows of an impending product recall may short sell the company’s stock right before the announcement. Information can also be illegally sold to a third‐party.
Market manipulation is the interference with the free and fair operation of the market by engaging in transactions that create or maintain an artificial price. Hedge funds represent an especially vulnerable target. “Churning” happens when a trader places multiple buy and sell orders simultaneously to create the appearance of increased activity and to drive up a stock price.
Violating accounting standards
Companies must keep accurate accounting books and records. Improperly characterizing the nature of expenses, legitimate or otherwise, is a violation of the securities laws.
Offering fraud occurs when an individual or group of stakeholders lie to potential investors in a new company by inflating its value. An example of this would be a new medical testing company that fails to disclose that one of its blood tests is not effective for its intended purpose.
Money laundering includes all those operations that aim to obscure the source, identity, or destination of the funds during any financial transaction.
Failing to disclose material info, or misrepresenting facts and substance of disclosure like risks and similar underlying loans.
Other common types of fraud include:
- Manipulating performance data
- Secret markup for transition
- Hidden fees
- Conflict of interest
- Investor fraud
Blowing the whistle to expose SEC fraud is critical to maintaining our country’s economic stability and prosperity. Fair and free stock markets are the foundation of our financial system. The programs passed by the Government ensured that the career of future Bernard Madoff can be stopped before it even begins.
Take the next step and assist our team in fighting this battle for justice. We can help you report any type of fraud by guaranteeing you complete anonymity.
Contact us now by filling out our online form or calling (800) 689-8552. Click here to learn more about how to report fraud.
Why Choose Whistleblowers International Law Firm?
Your information may be valuable. Reporting fraud is noble and possibly very rewarding. We help individuals in the financial sector report fraud in an effort to collect a reward. There is never a cost to you as we are a contingency law firm. Our fee is based upon any successful reward collected. The SEC/CFTC Whistleblower Programs reward between 10% to 30% of any fine collected on actionable information.
Work with Experienced Lawyers
Our attorneys and investigators have a track record of over 20 years working on some of the largest fraud cases in U.S. history. We work closely with our clients during the investigative stage to maximize your odds of success. You can trust us to file your claim with the SEC or CFTC in an effort to secure a possible reward.
When fraud is egregious and upper management is complicit, it may be time to seek legal advice. More and more the Federal Government is holding compliance personnel responsible when fraud goes unreported to the appropriate federal agencies. Everyone deserves to be protected against liability from fraud by their employers, as well as any wrongful termination or harassment. If you are thinking of reporting fraud internally, think twice! In order to be protected by the various whistleblower statutes, you must first file a case.
Contact our whistleblower law firm for more information. We can be reached online or at (800) 689-8552.
Focused on Creating a Better World
Whistleblowers International exists to help whistleblowers with strong information and evidence of wrongdoing against the government bring whistleblower lawsuits, and ultimately to help the next generation avoid these experiences and to prevent future victims. That's what "Committed to Global Transparency" means to us.
Practicing with Open Ears and Open Minds
We are familiar with the intricacies of these cases. You may not know exactly what kind of case your information might pertain to or what exact significance it has. We're the experts in this area and what to decipher that on your behalf. Whistleblower cases are extremely complex and your information may qualify you to initiate a legal action under one of the many kinds of governmental whistleblower programs that exist in the US.
A Rare Law Firm of Pure Whistleblowers
There are many law firms that represent whistleblowers, but very few law firms keep whistleblower cases as their sole focus in the way that we do. We've done this for decades, and we are eager to speak with you.
Unmatched Wealth of Knowledge in This Area
Dr. Joe is both a medical doctor and a licensed attorney who has been in the whistleblowing arena for over 30 years as both a consultant and a whistleblower himself. We want to hear you and see how we can help.
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