The world is evolving every day. Thanks to the fact that we live in what is called ‘the era of technology’, ranging from healthcare to the automobile industry, things are evolving at a very rapid rate in many fields. This is especially true for the financial world. While technology may have helped a lot of businesses reach new heights of success, the fact that there are people who are using it for all the wrong reasons cannot be denied. Every day you would hear about corporate scandals that are destroying the markets. Keeping this deteriorating situation of markets in mind, the SEC Whistleblower law firm program was created.
There are a lot of violations happening among organizations that are looked over. That, in return, damages the economy. Since individuals who were witnessing these violations were not reporting them to authorities, Congress created the SEC Whistleblower program to provide monetary investments for individuals who were not hesitant in reporting the violations of the federal security law to the SEC. There is a program for eligible whistleblowers who are entitled an award of monetary sanctions between 10% and 30%. Employees who may retaliate against employees who are willing to report the violations, this program also prohibits such behavior.
So, who exactly qualifies under whistleblower? The term ‘eligible whistleblower’ is used for an individual who voluntarily provides information about a possible violation of the federal securities laws that has happened, is currently happening, or is about to happen. The term, voluntarily, here means that the information must come from you or your lawyer. This information, however, must lead the SEC to take action against the violators and must result in order of monetary sanctions more than $ 1 million. Although one or more people can be allowed to act as whistleblowers, companies or organizations, on the whole, cannot act as whistleblowers. For you to be eligible, you must be the employee of the organization you are reporting against.
A few examples of what can be the possible information that you might report are:
• Insider trading
• Abusive naked short selling
• Fraudulent conduct involving securities
• Theft of funds or securities
• Misappropriation of funds or securities
• False/Misleading statements about a certain company
• Bribery of foreign officials
• Manipulating the price of the security
• Manipulating the volume of the security