SEC Whistleblower Program – What You Need to Know

SEC whistleblower program provides awards to qualified whistleblowers who give original data. This information may lead to the success of SEC enforcement actions. The civil punishments are more than $1 million. A whistleblower receives an award that ranges between 10 to 30 percent of the value of money collected. The money is collected in the practices brought by the SEC. Labaton Sucharow has a goal of protecting and strengthening sec whistleblowers. This is to encourage them to report any form of violations. Whistleblowers are against any kind of corruption. The actions of whistleblowers assist in safeguarding jobs and investors. They also enhance the capital generation and fair markets.

One of the major pillars for SEC whistleblower program is the ability to report wrongdoers and remain anonymous. In the past, whistleblowers were being exposed. This hindered them from reporting any misconduct or wrongdoing. Fraud and misconduct would take place in an organization without anyone detecting. This would lead to a fall in the organization and nothing could be done. Labaton Suchalow allowed anonymous reporting to encourage whistleblowers to report before it is too late. To report misconduct, a whistleblower is represented by an attorney. The attorney verifies the details of the whistleblower before making the submission to the SEC. the intermediary between the SEC and whistleblower is the attorney. The whistleblower will then disclose their identity to the SEC before receiving their reward.

The SEC program provides the whistleblower guaranteed protection against retaliation by the company. The program takes action on the companies that try to harass an employee who has acted as a whistleblower. The companies may face the law for retaliating an employee who has assisted in the investigation. This has encouraged the employees to provide information without fear. It has encouraged them to not tolerate any misconduct which might result in losses in the near future. This right to privacy covers even those who are not employees in the company but have provided information. Even if the person who reported does not qualify for a whistleblower reward, they offer protection from any form of retaliation. This involves those who have observed a potential breach, for instance, a customer. In the case of they report they should not be humiliated by anyone. Any form of retaliation towards them is against the law.

There are requirements for one to qualify for SEC whistleblower award. Not anyone qualifies to be a whistleblower. Others do not qualify while others have to undergo through additional procedures for them to receive whistleblowers award. The awards are presented to qualified individuals who meet the following:

  • On ones accord provide the commission;
  • With native data about a possible breach of the federal securities laws;
  • That leads to enforcement of actions to stop the violations;
  • And this results to financial reward that is more than $1 million;

The information regarding a possible breach may be passed on through two ways. One is through electronic means through SEC tips, complaints and referrals page. It can also be submitted through the use of emails and fax. All the tips are treated confidentially. The sec does not disclose who sent it or who reported. This gives the whistleblower assurance of security. Third parties do not access that information.