Even those who work with stocks, bonds, financial instruments, and the securities industry can find it difficult to know when fraud is happening right under their noses.
Fraudsters have been known to engage in schemes for years before being discovered, and the U.S. Securities and Exchange Commission (SEC) relies on brave individuals to come forward when they become aware of types of investment fraud and other securities violations.
If you have knowledge of such schemes, read on to learn more about the types of fraud the SEC is most interested in investigating, how you can protect your identity from becoming known, and why you should consider contacting a reputable securities fraud whistleblower lawyer before you report your tip.
Common Types of Securities Fraud
The financial markets and securities industry are often complex, and knowing when fraud is ongoing or has occurred can be a challenge, even for seasoned professionals. It is for this reason that schemers are often able to get away with their crimes for a considerable amount of time before being stopped.
If you are able to recognize the types of fraud that the SEC is most interested in investigating, you may have a better chance of understanding whether you should report a whistleblower tip to the SEC. The following types of securities fraud are commonly seen and are a priority to the SEC:
- Insider trading
- Embezzlement
- Money laundering
- Investment fraud
- Ponzi schemes
- Offering fraud
- Failure to disclose
- Broker-dealer misconduct
These are just a few types of securities fraud the SEC is interested in investigating. If you have knowledge of any of the previously mentioned schemes or another type of fraud that occurs within the securities industry, you should certainly consider becoming a whistleblower.
Protecting Your Identity
Prior to tipping off the SEC, it may be in your best interests to secure a qualified whistleblower attorney. There are many reasons to secure a lawyer to represent you, but one of the most important is the ability to protect your identity.
The SEC only allows whistleblowers to report their tips anonymously if they have legal representation, as they may need further information and will need to be able to communicate with someone in order for the case to proceed.
When you report your tip anonymously, you reduce your risk of being retaliated against, though retaliatory action is always a risk, even if you do protect your identity from becoming known. For this reason, it may be well-advised to hire an SEC whistleblower lawyer before reporting your whistleblower tip to the SEC.
Contact an SEC Whistleblower Lawyer
Bringing information to the SEC may be quite intimidating, especially when you have concerns that you will be retaliated against if your identity becomes known.
Oftentimes, the best way to report your tip while protecting your identity and minimizing the level of dread that often comes with blowing the whistle is to contact an experienced SEC whistleblower lawyer who can assist you in filing your tip and will remain by your side throughout the whistleblowing process.
