Whistleblower Claims – Trusted Securities Counsel
Whistleblower claims play an important public function in today’s marketplace by exposing fraud and corporate wrongdoing. Whistleblowers often fear retaliation and require legal protection.
Whistleblower Claims
The Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted on July 21, 2010. The Act includes, among other aspects of financial regulatory reform, significant new incentives for employees and others to blow the whistle when they are aware of securities law violations.
Section 922 of the Act authorizes the SEC to pay rewards between 10 and 30 percent of the total penalties imposed by the agency to individuals who provide the Commission with original information that leads to successful SEC enforcement actions and certain related actions of at least $1 million. To be considered for an award, a person must be a (i) whistleblower who (ii) voluntarily provides (iii) original information that (iv) leads to a successful enforcement action totaling more than $1 million.
On September 25, 2012, a federal judge in Connecticut resolved an apparent tension between the anti-retaliation provision of the Act and the definition of “whistleblower” in a way that broadly interprets the protections afforded to employees who report issues they “reasonably believe” constitute violations of the securities laws, even where the employee has never raised the issue with the Securities and Exchange Commission.
The decision by Judge Underhill in Kramer v. Trans-Lux Corp., appears to be the first in which and the ruling appears to extend whistleblower protection to all individuals who report or disclose, either internally or to the SEC, alleged violations that are “required or protected” under the Sarbanes-Oxley Act of 2002, the Securities Exchange Act of 1934, 18 U.S.C. § 1513(e), or any other law, rule, or regulation subject to the jurisdiction of the SEC.
The SEC whistleblower claims program permits whistleblowers to report anonymously. A whistleblower must be represented by an attorney and provide the attorney a copy of the whistleblower claims submission signed under the penalty of perjury.
The attorney will verify the identity of the whistleblower before any information is submitted to the SEC; serve as an intermediary between the SEC and whistleblower during any investigation and related enforcement action; and, in the case of a successful enforcement action, advocate for the highest potential monetary award. Prior to receiving any monetary award, for eligibility, tax and other reasons, whistleblowers must disclose their identity to the SEC.
Why Whistleblower Claims Attorneys at Bakhtiari & Harrison?
If you believe you’ve that you have imformation concerning a wrongful practice, it’s important to act quickly. The sooner you take steps to address the wrongoing, the better. At Bakhtiari & Harrison, we are committed to helping victims and representing persons in whistleblower claims. Contact us today to discuss your case and explore your legal options. We’re here to help you take the next step.
Bakhtiari & Harrison is a premier nationwide law firm, focused on representing clients resolving securities industry related disputes through arbitration and state and federal court litigation. The firm’s partners have extensive experience in securities, employment and regulatory matters. Our focus is on delivering strategic and creative client-centric solutions.
We represent individuals and institutions in securities arbitration and litigation claims before FINRA (Financial Industry Regulatory Authority), AAA (American Arbitration Association), other arbitration providers and in state and federal courts. The firm represents financial services professionals, registered investment advisors and broker-dealers in employment matters, industry disputes and regulatory investigations.
Retaining a whistleblower claims law firm is an important decision made with great care. The Importance of Selection of Counsel cannot be overstated and may be the most important decision a litigant makes before or after a dispute arises. For more information, please review our Experience and Credentials.