The SEC (Securities Exchange Commission) Whistleblower Program came into effect in 2011 after the Dodd-Frank Consumer Protection Act was amended in 2010. This amendment was meant to correct the few disparities in securities laws that made it challenging to come across facts about securities violations. The changes included in the law will allow whistle-blowers to share useful information without fear of victimization because their security is provided for.
Additionally, several law firms have partnered with SEC to offer whistleblowers better security and guide on how to approach matters under this law. History has proved that law enforcement agents alone cannot effectively unearth information about violations, but with the help of civilians, it will be easier to fight securities fraud.
If you are a whistleblower who shares information about your employer, you do not need to worry about victimization. Initially, many people would keep vital securities violations information to themselves for the fear they would fall victims of bullying or evictions, should their employers take note of their action. However, the 2010 Consumer Protection Act amendment allows for additional protection for whistleblowers and an employer cannot sue, bully, demote or in any way act in a manner deemed demeaning due to information you have shared with the authorities about the individual.
If your employer proceeds and does any of the things mentioned and prohibited by the law, as a whistleblower you reserve the right to sue the individual and you will be given free legal representation. The offender may have to part with huge fines or face other punitive measures. With these laws in place, more securities violations are being reported, something that is forcing companies to act in the best manner to prevent falling in the hands of the law enforcement agencies. Learn more about SEC Whistleblower lawyers
Monetary sanctions and rewards
As described in the SEC Whistleblower Program, successful reports that are presented by whistleblowers may attract rewards in certain amounts. On May 17th, 2016, SEC introduced new rates of rewards for whistleblowers who share insider information that cannot be gotten easily. The reward margin was set at between $5 and $6 million, which is considered the highest amount the body has proposed since inception in 2011.
This kind of effort and dedication simply shows how ready and willing SEC is to fight securities fraud. With the introduction of these laws, whistleblowers can now share facts since there are no bottlenecks that may put their lives into danger.