Whistleblowing is something that most people are afraid to do. People are afraid of the aftermath of whistleblowing. However, some programs help whistleblower report any actions especially those that involve federal security laws.
The SEC whistleblower program rewards to whistleblowers with monetary awards and employment protection. It was formed as a response to deal with the corporate scandals in the United States. Anybody can join the program. In order to qualify for a monetary award, one has to provide the SEC with the original information about a violation of federal securities laws.
The violations that one can report is on the federal securities laws that are on-going, is about to occur or has occurred. The violation may have occurred in any part of the world. Most of the enforcement actions are on deceptive and manipulative practice regarding the sale or purchase of a security. Therefore, a whistleblower needs to focus on these areas.
The procedure for submitting a violation is straightforward. To report the violation, one has to submit information on the federal law violations through the mail, complaint portal, or fax an SEC form to the whistleblowers SEC office. The successful whistleblower is one who has submitted detailed information on the violation. The SEC Whistleblower office will confirm if the violation report is valid or not.
The whistleblower program has awarded many whistleblowers upon successful violation reports. In order to take part in the program, one needs to be at the right place and at the right time. It is also necessary to do all things right. In January 2017, some whistleblowers got awarded $4,000,000. The whistleblowers had assisted staff after an investigation had been opened. There is also another whistleblower who received the same amount for providing the SEC with information on serious misconduct and even assisted during the investigation.
Whistleblowers are required to apply to receive an award. Once the monetary sanctions exceed $1 million, the SEC will post a notice of covered action on their website. The whistleblower has a period of 90 days to fax or mail their application for the award their respective offices. The SEC notifies the whistleblowers of the enforcement actions that were successful. A whistleblower can only apply for the award if their enforcement actions were successful. Therefore, it is necessary for whistleblowers to monitor their covered activities. In doing so, the whistleblower will not miss the application deadline for the award.