About SEC Fraud
Report Securities Fraud & Collect 10% to 30% of the Recovery under the SEC's New Whistleblower Program
Under the Dodd-Frank financial reform law, whistleblowers who provide useful and original information are eligible to receive 10 to 30 percent of penalties of $1 million or more that the SEC collects in criminal or civil cases.
Prior to the enactment of the Dodd-Frank Act, the SEC only had authority to reward whistleblowers in insider trading cases. The SEC's new whistleblower program strengthens the SEC's ability to protect investors in several ways:
Responsive to whistleblower fears of employer retaliation, the new law does not require the would-be whistleblower to report the fraud to his employer first. Rather, the law allows whistleblowers to file a complaint directly with the SEC.
Recently, the SEC reported that it received 334 whistleblower tips between the time the new program became effective on August 12, 2011 and September 30th. Among those who have filed claims are a former BNY Mellon currency trader and two former State Street currency employees. The allegations against their former employer-banks center on claims that they overpriced certain currency trades for large institutional clients by using less-advantageous exchange rates to maximize their own profits. If these allegations prove successful, these whistleblowers may be the first to receive a bounty under the new SEC program.
While the new program provides excellent opportunities for whistleblowers with original information, navigating the securities laws and dealing with the SEC can be both complex and time-consuming. Hiring attorneys with knowledge and experience is crucial to maximizing your reward.
Read more about securities fraud.
If you have information concerning corporate fraud that you believe amounts to $1 million or more, contact the knowledgeable attorneys at Levy Phillips and Konigsberg, LLP, for a free consultation by calling our toll-free 24/7 hotline at 1.888.FRAUD.USA (1.888.372.8783). All communication is confidential.
Latest Securities Fraud News
|Johnson & Johnson to Pay $158M to Settle Texas Drug Case|
January 19, 2012 - Johnson and Johnson recently settled with the the state of Texas' Medicaid program for $158M after a whistleblower learned that the drug company was making false or misleading statements about the safety, cost and effectiveness of the anti-psychotic medication Risperdal, and improperly influencing officials and doctors to prescribe it. As a result of J&J's fraudulent actions, its stock price was inflated and its shareholders suffered damages. In this settlement, the Government recovered Medicaid funds paid to J&J as a result of its false claims. However, because of the impact J&J's fraudulent actions has on it's stock price, this is also a form of corporate securities fraud.Read more...
|U.S. Charges 7 for Insider Trading of Dell Stock|
January 18, 2012 - Two multi-billion dollar hedge fund advisory firms, seven fund managers and analysts have been accused of forming a $78 million insider trading scheme to purchase shares of a major company based upon nonpublic information. If you had uncovered this scheme and reported it by filing an anonymous complaint here, you could have been entitled to a large monetary reward.Read more...
|Netflix Sued in Class Action Alleging Insider Trading|
January 17, 2012 - Netflix is being sued by its shareholders in a class action complaint claiming that the movie rental company failed to inform them that its content contracts were due to expire and would be too costly to renew. As a result, Netflix raised the cost of membership causing its stock to tank. Meanwhile, the CEO of the company sold 190,000 of his shares for $43.2 million. You can anonymously report this type of securities fraud to the attorneys at Levy Phillips & Konigsberg, LLP, to be entitled to a large monetary reward.Read more...