Having knowledge of fraudulent activity is a burden no-one should have to bear. Unfortunately, far too often individuals find themselves in a situation where they’ve learned of a possible securities violation and aren’t sure where to turn. For this reason, the United States Securities and Exchange Commission (SEC) has taken steps to address this issue by developing a whistleblower program.
Those who come forward and report suspected securities violations to the SEC will have the opportunity to win sizable awards if their tip leads to enforceable action against the violator in question, and all other whistleblower award requirements are met.
However, it’s important to note that blowing the whistle comes with significant risks, which is why it’s important for you to make sure you are protected before you take the leap and become a whistleblower.
Why Whistleblowers Remain Anonymous
Many whistleblowers will take advantage of the opportunity to remain anonymous when reporting their tips to the SEC. You can protect your identity from becoming known when you work with a qualified SEC whistleblower lawyer.
You will want to keep your identity from being known to your employer and other colleagues because of the very real fear of retaliation. If an individual or corporation is capable of defrauding people, who knows how far they’d go to protect themselves.
Many former whistleblowers have reported malicious actions being taken against them after blowing the whistle such as stalking, having their cars tampered with, their homes broken into and getting menacing phone calls to their home.
In addition, your employer could otherwise retaliate against you by making your work environment hostile, ruining your professional reputation, terminating or demoting you and blacklisting you from the industry you work in.
The Sarbanes-Oxley & Dodd Frank Acts
The SOX and Dodd-Frank Acts both contain provisions that are designed to protect whistleblowers from being retaliated against by their employers. That doesn’t necessarily mean that your employer will follow the law though. After all, they’ve already broken the law by engaging in securities violations, haven’t they?
When you chose to remain anonymous when reporting your tip, you will have retained an experienced whistleblower lawyer. If your employer discovers or suspects you to be the whistleblower, and retaliates against you, your lawyer will be able to bring a claim against them that will allow you to recover your losses. The SEC will also investigate and impose sanctions of their own if your employer retaliates against you for blowing the whistle.
Reach Out to a Highly Trained SEC Whistleblower Lawyer
If you’ve discovered that your employer, or anyone for that matter, has been engaging in securities fraud and you want to do your part to put a stop to it, speak with a qualified SEC whistleblower lawyer who can help you protect your identity from becoming known and represent you during this sure-to-be trying time in your life.