A whistleblower is an individual who alone or jointly provides information to the SEC about possible past, present, or future violations of federal securities laws. Under SEC rules, whistleblowers must make their claims using an SEC Form TCR. People who provide important information to the SEC that allows it to prosecute violators of federal securities laws are eligible for rewards and protected from retaliation by their employers. If you are considering whether to report a securities violation, you should seek counsel from a knowledgeable attorney to make sure that your interests are protected. At the Silver Law Group / Law Firm of David R. Chase, PA, our SEC whistleblower attorneys represent people who want to report a violation to the SEC without suffering from retaliation.Understanding How the Whistleblower Program Works
The whistleblower program is set forth in Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Prior to Dodd-Frank, the SEC had complete discretion over the award, which was governed by Sarbanes Oxley and only given in insider trading cases. Under Section 922, if an SEC judicial or administrative action results in sanctions of more than $1 million, the SEC must pay an award to a whistleblower who voluntarily gave original, high-quality information to the Commission that led to the action's success. The award is an aggregate amount of between 10% and 30% of the monetary sanctions imposed.
The "original" information requirement is important because it means that you have provided eligible information to the SEC or another authority before being asked, and the information is not known to the SEC or another organization. Some whistleblowers start by reporting a securities violation internally. To be certain that you are eligible for an award, you should report to the SEC within 120 days of providing an internal report. Appellate courts are split regarding whether protection against retaliation should be provided to those who only make an internal report.
For many employees-turned-whistleblowers, retaliation from an employer is a substantial concern. Under Dodd-Frank section 21F(h)(1)(A), your employer is not permitted to take any adverse action against you for any lawful activity in giving information to the SEC, helping with an SEC investigation or action, or making disclosures protected under the securities laws. You have the right to sue your employer for a violation of this anti-retaliation rule. If you are successful in your lawsuit, you may be reinstated in your job, as well as recover double back pay, costs, and fees.Knowledgeable Attorneys Ready to Guide You
Managing partner Scott L. Silver vigorously advocates for investors and employees who are bringing claims against members of the financial services industry, such as hedge funds, brokerage firms, and individual brokers. He uses insights gained from working at a law firm that represented the financial services industry to anticipate and counter the strategies that may be used against his clients.
Scott has authored an acclaimed whistleblower program outline that is available free of charge upon request. His thorough knowledge of this complex area of the law has led to speaking engagements nationwide, including at law schools, community events, and lawyer conferences. Scott represents clients throughout the U.S. and elsewhere in the world in litigation and in arbitration proceedings before the Financial Industry Regulatory Authority (FINRA), the National Futures Association (NFA), and the American Arbitration Association (AAA).
Partner David Chase, principal of the Law Firm of David R. Chase, PA, joins Scott in fighting for the rights of investors in complex cases involving SEC investigations and securities litigation. David also has a keen understanding of the strategies that defendants may use against his clients, based on his experience working for an international firm that represented many large Wall Street financial institutions. He combines that knowledge with an understanding of how the SEC investigates these matters, having served as a former Senior Counsel in its Enforcement Division and as a Special Assistant U.S. Attorney in the U.S. Attorney’s Office Economic Crimes Division.
David’s recognition in the field has led to his appointment as a Receiver in various SEC and FTC enforcement cases, which offers him another way to protect the interests of investors. An adjunct professor at the University of Miami School of Law, where he teaches a course on SEC Enforcement, David has served as Chairman of the Securities Litigation Committee for the Dade County Bar Association and as the Co-Chair of the Securities Enforcement Subcommittee for the Business Law Section of the American Bar Association.Explore Your Options with an SEC Whistleblower Lawyer
At Silver Law Group / Law Firm of David R. Chase, PA, our SEC whistleblower attorneys assist employees and investors throughout the U.S. We are ready to help you investigate the details of your situation and determine a course of action that is tailored to your needs and goals. Contact us at (800) 975-4345 or through our online form for a free consultation with a securities fraud attorney.