What is a whistleblower?
A whistleblower is a conscientious citizen who possesses inside information about fraud or other illicit activity at a public or privately owned company. By presenting this information to the correct authorities, the whistleblower protects Main Street from the repercussions of corporate corruption.
What’s in the bill for whistleblowers?
The Dodd-Frank Act, signed into law on July 21, 2010, offers considerable new protections and rewards for corporate whistleblowers. Under the new Act, whistleblowers will be eligible to receive between 10% and 30% of any monetary penalty in excess of $1 million imposed as a direct result of their assistance, cooperation, and knowledge.
Besides compensation for meritorious claims, the Bill affords whistleblowers two significant protections: the ability to submit claims anonymously and protection from job termination or discrimination as a result of their cooperation with the SEC. If such termination or discrimination is discovered, the whistleblower is entitled to:
- Back pay plus interest;
- Reinstatement with the same seniority status he’d have had were he not terminated or discriminated against; and
- Compensation for any special damages including litigation costs, expert witness fees, and attorney’s fees.
Why file a whistleblower claim?
Individuals across America and across the globe invest in American businesses based on their reliability and integrity. Specifically, foreign governments purchase U.S. treasury bonds because they believe in the soundness of the American system. Violators of securities laws threaten the credibility and reliability of the American economy.
Those who invest in securities deserve your vigilance. Most securities are not held by wealthy individuals, but by average American investors who have 401(k) retirement accounts, college savings funds, and pension assets in stocks of public companies. Millions of American investors depend on the credibility of the securities market for financial planning.
Acting as a whistleblower for securities fraud violations is every citizen’s opportunity to right corporate wrongs and protect consumers by limiting fraud.
What is “original information”?
Original information is a) information based on the direct and independent knowledge or analysis of a whistleblower; b) not known to the Commission from any other source; and c) not exclusively based on an allegation made in a judicial or administrative hearing, in a governmental report, hearing, audit, or investigation, or from the news media.
How can we help?
If you possess original information that you believe will reasonably move the SEC to investigate and find fraud, we can help you strengthen your case. It is possible to submit claims to the SEC on your own behalf; alternatively, you may retain an attorney to represent and help further your cause. If you desire to submit information anonymously and collect a monetary reward, the law requires that whistleblowers retain an attorney. As a whistleblower it is essential that your information is framed in a context that
- encourages investigation;
- demonstrates a clear knowledge of wrongdoing; and
- makes it clear that you are offering original, exclusive information.
Our decades of experience in complex litigation including cases intimately related to the SEC, DOJ, and the IRS are our most vital asset. Berk Law’s practiced attorneys have the knowledge and skill to develop the best course of action for filing whistleblower claims, moving along the path towards sanctions, and ultimately recovering funds for our clients.
