The U.S. Securities and Exchange Commission (“SEC”) and the U.S. Commodity Futures Trading Commission (“CFTC”) offer monetary rewards to people who report possible violations of the Federal Securities Laws and the Commodity Exchange Act.
The SEC and CFTC Whistleblower Programs provide monetary incentives for persons who voluntarily provide original information about possible violations of the Federal Securities Laws or Commodity Exchange Act that result in an order of monetary sanctions exceeding $1 million dollars. Original information is information derived from independent knowledge that is not publicly available. Information may be publicly available if it contains independent analysis and is not already known by the SEC or CFTC.
SEC and CFTC whistleblowers rewards range between 10-30% of the monetary sanctions ordered. The percentage amount of the reward received is set at the discretion of the SEC or CFTC taking into consideration the following:
Under the SEC Whistleblower Program, one or more people may act as whistleblowers. Companies and organizations cannot qualify as whistleblowers. Under both whistleblower programs, whistleblowers are not required be employees of a company to submit information about that company, and individuals are not required to first internally report the information to their company. However, if they do internally report, in order to be eligible for a whistleblower award, the person must report the information to the SEC or CFTC within 120 days.
Under the SEC Whistleblower Program, you must be represented by an attorney to submit your information anonymously. The attorney will assist you with your submission and fight to protect your identity.
Under the CFTC Whistleblower Program, you can file your submission anonymously with or without an attorney’s help. However, an attorney may be better able to assist you with the detailed provisions, fight to protect your identity and help you in securing a reward.
Both the SEC and CFTC Whistleblower Programs provide protection against retaliation (discharge, demotion, suspension, harassment, or in any discrimination against you) by employers and individuals are allowed to bring a private suit against their employer and are entitled to reinstatement, back pay, litigation costs, expert witness fees, and attorney fees if they prevail.
If you would like to discuss with the Young Law Group a possible whistleblower claim with the SEC or CFTC, please contact us now.