The SEC whistleblower program was formulated by the Congress. This program is geared towards issuing monetary incentives to individuals who bring forth cases about the violation of federal security laws to the SEC. The SEC program has a team of eligible whistleblowers who always receive a percentage of the monetary sanctions that are collected. This program also ensures that the employers cannot retaliate against their employees in case any security violations are involved.
About the SEC Whistleblowers
A whistleblower is an individual who provides the SEC with legitimate information voluntarily. The report should be about the federal security laws that have been violated. The information provided must check out. Afterward, the SEC can handle the case, which will, in turn, have a monetary value of more than $1 million. More than one individual may act as a whistleblower. However, a company cannot act as the whistleblower. Furthermore, it is not a must for you to be an employee of the company for you to serve as a whistleblower. For you to receive an award, the information about the violation of the federal security laws must be provided in a form.
The Information that You Can Provide to the SEC
After the SEC has been notified about the violation of various federal security laws, they always carry out a thorough investigation. Nonetheless, an inquiry is only carried out if the information provided by a whistleblower is credible. For example, if the whistleblower has provided details about various transactions that are fraudulent, such a tip may trigger the presence of an investigation. The SEC is, however, not authorized to look into cases that are not related to the violation of federal security laws. Other forms of violation are handled by other law enforcement agencies. The SEC mainly handles cases such as pyramid schemes, Ponzi schemes, mismanagement of securities or funds, mishandling pension plans, and spreading false information about a company. People always provide such information to the SEC voluntarily. You can provide such information personally or through a SEC Whistleblower law firm.
The information provided should relate to your independent analysis. This analysis will avail more information about the federal security laws that have been violated. If the information that you are providing had already been availed by someone else, it could not be termed as original. When you provide adequate information, the SEC will not hesitate to conduct an investigation. The SEC is always determined to locate the root of the problem. Eventually, justice always prevails.