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What You Need To Know About SEC Whistleblowing

Investments can be lucrative for people who know how to purchase stocks,bonds,and securities and when to make adjustments to avoid losing their money. However,many investors are everyday people who trust financial advisers and organizations to grow their money using profitable,but ethical investment strategies.

Unlike bank accounts,stocks,bonds,and securities are not insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC is a federal agency that regulates banks and ensures that individuals won’t lose everything if a bank where they have money deposited fails.

The Security and Exchange Commission (SEC) is the federal agency that oversees investment activities. There have been numerous situations where people trusted a financial adviser or organization to invest their funds only to lose their money. Individuals and families have lost their entire savings because of the actions of dishonest people and companies,which is why the SEC has what is known as the “Whistleblower” program.

What is SEC Whistleblowing?

The “Whistleblower” program and allows persons who have knowledge of unscrupulous activity by a company or individual in charge of investments to report that information to the SEC confidentially. A whistleblower begin the process by going to the SEC website. The information reported is valuable because it can help the SEC prevent honest people from losing their money.

Insider trading is another instance where a whistleblower might make a report. Insider trading is illegal and occurs when an investor purchases or sells stock to make a profit or avoid losses based on inside information not available to the general public.

Whistleblowers who report such information to the SEC help prevent fraud. When the SEC investigates and finds the whistleblower’s report credible,the guilty parties are held accountable.

A Whistleblower may be eligible for a monetary award when significant sanctions are imposed. Whistleblowers’ identities are kept confidential. Prior to coming forward,it is a good idea for an individual who is considering becoming an SEC Whistleblower to consult an whistleblower lawyer.


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