New York City Whistleblower Reward

Individuals living or working in New York City, who come across instances of corporate fraud or securities violations, usually consider reporting the violation to the authorities because it is “the right thing to do.” However, they often wonder how it might affect them and what, if any, personal benefit there is to their undertaking the effort to do so. One answer is that if they provide their information to the U.S. Securities and Exchange Commission (“SEC”), they may be eligible to receive aNew York City whistleblower reward from the SEC.

As a Federal Agency, the SEC has authority throughout the United States. So, an SEC whistleblower may be a resident or employee of any state in the country and possess the same eligibility for an SEC whistleblower reward.

Further, an SEC whistleblower needn’t be employed by a public company or financial business, or for that matter, be a U.S. citizen or resident, to qualify for an SEC whistleblower award. The SEC has rewarded foreign nationals with whistleblower awards, too. Any individual who has information about a business or securities fraud at any U.S. public company or financial organization can provide the information to the SEC through the SEC whistleblower program.

What Is An SEC New York City Whistleblower Reward?

Under the Dodd-Frank Act, the SEC is required to reward qualifying whistleblowers with between 10% to 30% of the sum obtained when the penalties collected by the SEC from the wrongdoers are in excess of $1 million. As a New York resident or employee, you may be eligible for this New York City whistleblower reward from the SEC if you voluntarily provide original information about corporate fraud or securities law violations to the SEC, and this information leads to a successful action by the SEC.

Keep in mind, though, that there are a lot of SEC whistleblower rules that determine whether someone is eligible to receive an SEC whistleblower award, and a lot of rules that could disqualify someone from receiving an SEC whistleblower reward. If you have any questions or concerns about those rules or your eligibility under the SEC whistleblower program, you may want to consult with an SEC whistleblower law firm.

Types of SEC Actions

Some types of cases that might lead to a New York City whistleblower reward from the SEC include, but are not limited to:

• False or misleading financial statements
• False or misleading reporting and disclosures
• Foreign Corrupt Practices Act (FCPA) violations
• “Pay-to-play” violations
• “Gatekeeper” cases against accountants, auditors, compliance professionals, and others
• Insider trading
• Fraud and violations involving mortgage-backed securities and collateralized debt obligations
• Municipal securities frauds and violations
• International investment fraud
• Market manipulation
• Ponzi schemes