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What Is Securities Fraud?

As with any industry, there are always a few bad apples. But within the securities industry and financial markets, these individuals can do significant damage to investors and the public alike. 

Securities fraud is a top priority of the U.S. Securities and Exchange Commission (SEC), and if you have information regarding such fraudulent activities, you may be entitled to a substantial whistleblower award for reporting your findings to the SEC. Continue reading to learn more about what constitutes securities fraud and the basics of becoming a whistleblower.

Common Types of Securities Fraud

Securities fraud can take many different forms, making it much more difficult to uncover, even for experienced professionals within the securities industry. One thing every type of securities fraud has in common: defrauding of investors. 

Whether the investor had money taken from them in a money laundering scheme, or they were tricked into investing due to misrepresentation of some kind, an investor is usually taken advantage of by a stockbroker or financial planner. 

Investors usually won’t discover the fraud until they’ve endured substantial losses, some even amounting to hundreds of thousands of dollars or more. For this reason, the SEC needs help from individuals who have knowledge of these schemes. The people who have the courage to come forward are known as whistleblowers. 

What You Need to Know About Blowing the Whistle

If you have knowledge of securities fraud of any form, you may want to consider reporting your findings to the SEC. But, before you do, there are steps you should take to protect yourself. One of the most important steps in any whistleblower case is to retain legal representation. 

This provides a number of benefits, which includes the ability to report your tip anonymously, having an experienced legal professional in your corner during this complicated time in your life, and being able to reduce the likelihood that you’ll be retaliated against by your employer if you work for the company engaging in securities fraud.

In the event that your tip allows the SEC to take enforceable action against the violator, you may be entitled to a significant whistleblower award. Other criteria for winning an award include coming forward before being questioned by the SEC, providing valuable information, and being the first whistleblower to come forward with this specific tip. 

The SEC will need to recover sanctions exceeding $1 million for you to be entitled to a whistleblower award, and, depending on how essential your tip was to the success of their investigation, you could come away with as much as 30 percent of the amount the SEC is able to recover. 

Get in Touch with a Securities Fraud Whistleblower Attorney

When you are ready to blow the whistle and put a stop to investment fraud or some other type of securities violation, reach out to an experienced securities fraud whistleblower lawyer at Meissner Associates for help. You can find us online or contact our office by phone at 1-866-764-3100 to discuss the circumstances of the securities violations in question.


About the Author:

Meissner Associates


When people have knowledge of securities fraud and inadequate corporate disclosures, they come to Meissner Associates to blow the whistle and tip off the SEC. Our firm’s founder, Stuart Meissner, helped craft the rules that reward whistleblowers, giving us in-depth, firsthand knowledge of how to protect whistleblowers and get them the best financial reward for their information.We can provide representation for a number of different whistleblowing matters:SEC whistleblowingCFTC whistleblowingFCPA whistleblowingExposing securities fraudReporting insider tradingMeissner Associates can also assist in recovering losses caused by broker mismanagement and misconduct when at least $100,000 in... View full business profile here: Meissner Associates





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