New York is home to some of the biggest securities and exchange deals in the country and the world. Unfortunately, it is also commonly home to fraud and other predatory practices. New York, as a financial hub, can attract some of the worst instances of securities fraud.
If you have information about New York securities fraud, you may be eligible to receive a significant financial award. Bringing your information to a New York securities fraud whistleblower lawyer can help ensure that you have the best possible chance of recovering the full financial award available to you if your case is successful. Your free consultation is confidential. Contact the whistleblower attorneys of Tycko & Zavareei LLP today to discuss the details of your situation and find out if you may have a case.
Qui Tam Law and Securities Fraud
Qui tam law is a specific area of U.S. law wherein a private party (known as a “whistleblower” or a “relator“) files a case on behalf of the government. In qui tam law, the government is the real plaintiff.
Qui tam lawsuits are often used to fight fraud and corruption. They are one of the main tools by which the government can recoup stolen or misappropriated funds. In order to incentivize private citizens to come forward with information, whistleblowers can receive up to 30% of the government’s total financial recovery. In cases of extensive or ongoing fraud, this amount can easily number into the thousands or millions.
Cases of securities fraud, like qui tam law, are complex and usually involve specialized knowledge. Hiring a qualified New York securities fraud lawyer can increase your chances of a successful lawsuit and make the litigation process much smoother for you.
The Securities and Exchange Commission (SEC) Whistleblower Program
The SEC whistleblower program implements the whistleblower provisions outlined in the Dodd-Frank Wall Street Reform and Consumer Protection Act. Specifically, it provides financial awards and incentives to individuals who come forward to report:
- Violations of securities law
- Violations of the Foreign Corrupt Practices Act
- Bribery of government officials
Similar to the False Claims Act, whistleblowers who report their findings under the SEC Whistleblower program can be eligible to receive 10% to 30% of the total amount recovered.
Common Examples of New York Securities Fraud
Some of the most common kinds of violations that can trigger a New York securities fraud case include:
- Market manipulation, including manipulating a security’s price
- Making false statements about a company or investment or withholding information
- Misrepresenting corporate assets
- Insider trading
- Unregistered securities offerings
- Theft of securities or funds
- Fraud associated with public pension plans
- Cryptocurrency fraud
Employees’ specialized knowledge of the inner workings of their company makes them especially valuable as relators in qui tam cases. If you work for a company that you suspect is committing securities fraud, do not hesitate to speak up. A qualified qui tam lawyer can explain what kinds of proof may be useful to launch an investigation.
SEC Whistleblower Awards
With the help of whistleblowers, the SEC has recovered $4.8 billion in the last decade from entities that have violated securities laws. A significant portion of the tips the SEC has received have come from the state of New York, just behind California which has reported the most SEC violations.
These tips not only help create a more equitable financial market for all, but they can also result in large financial rewards for the brave individuals who report them. The SEC reports that it has awarded $1 billion to whistleblowers for their help in uncovering securities fraud. Awarded in October 2020, the largest SEC whistleblower award to date was valued at $114 million. It was paid to a single whistleblower whose ongoing help and insider information led to a successful enforcement action.
New York Whistleblower Protections
Whistleblowers who report New York companies for securities fraud may remain anonymous to the public, even after the case is resolved. In some cases, their identity can even be kept anonymous to the SEC while the lawsuit is being litigated. A New York securities fraud whistleblower attorney can help protect your identity.
New York whistleblowers are also protected by the Dodd-Frank Wall Street Reform and Consumer Protection Act from retaliation if and when their name is revealed. Examples of prohibited retaliation include, but are not limited to:
- Firing a whistleblower
- Demoting a whistleblower
- Reducing a whistleblower’s hours or pay
- Threats or harassment
- A change to a whistleblower’s terms of employment because of their disclosure
Coming forward in cases of New York securities fraud is the right thing to do. If you are being discriminated against because of speaking up, contact an attorney to report your employer’s conduct.
Contact a New York Securities Fraud Whistleblower Lawyer
The number one mistake in a qui tam case is waiting too long to come forward with information. Once a tip has been reported to the Securities and Exchange Commission by another source or has been broken by the media, it cannot be used by a whistleblower to claim a financial reward. Additionally, the longer employees wait to report fraud, the more likely crucial evidence has been tampered with or destroyed, or they themselves may become implicated in the wrongdoing.
If you have information about New York securities fraud or falsified attempts to keep or claim government funds, contact Tycko & Zavareei LLP today. Our expert team provides free, confidential consultations to help you decide what to do next.
