The SEC is offering large financial rewards to people that anonymously and properly expose insider trading, hedge fund insider trading, private equity fund fraud, money manger insider trading, hedge fund manager illegal trading, stock manipulation schemes, and other violations of securities law. These insider trading rewards can be obtained by financial professionals, investors, and other individuals with knowledge of illegal insider trading and other SEC violations. By working through a lawyer, these whistleblowers can report the SEC violations anonymously and collect large rewards. For a free confidential review of a potential SEC bounty action, please feel free to contact Insider Trading Reward Lawyer and Securities Fraud Reward Lawyer Jason Coomer via e-mail message or use our submission form.
Large SEC rewards through bounty actions have been established to encourage all financial professionals with original knowledge of executive insider trades, hedge fund insider trades, private equity fund fraud, false misleading information on a company's financial statements, false information on Securities and Exchange Commission (SEC) filings, stock manipulation schemes; embezzlement by stockbrokers; and other securities fraud to properly expose the violations.
For many financial professionals, it can be a difficult decision to step forward to expose executive insider trades, hedge fund insider trades, private equity fund fraud, false misleading information on a company's financial statements, false information on Securities and Exchange Commission (SEC) filings, stock manipulation schemes; embezzlement by stockbrokers; and other securities fraud. To protect these professionals, confidentiality safeguards have been put in place that allow the financial professional whistleblower to blow the whistle on securities fraud through an attorney. By contacting a Confidential Insider Trade Whistleblower Lawyer, Confidential Securities Fraud Whistleblower Lawyer, or Confidential Financial Professional Whistleblower Lawyer, the financial professional can protect their identity and career as well as identify any potential issues with a potential bounty action.
Exposing and prosecuting insider trading has long been a high priority for the SEC. The SEC prosecutes insider trading under the general antifraud provisions of the Federal securities laws, most commonly Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5, a broad anti-fraud rule promulgated by the SEC under Section 10(b). Section 10(b) declares it unlawful “[t]o use or employ, in connection with the purchase or sale of any security . . . any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors.” Rule 10b-5 broadly prohibits fraud and deception in connection with the purchase and sale of securities. As the Supreme Court has stated, “Section 10(b) and Rule 10b-5 prohibit all fraudulent schemes in connection with the purchase or sale of securities, whether the artifices employed involve a garden type variety of fraud, or present a unique form of deception,” because “[n]ovel or atypical methods should not provide immunity from the securities laws.”
There are two principal theories under which the SEC prosecutes insider trading cases under Section 10(b) and Rule 10b-5. The “classical theory” applies to corporate insiders – officers, directors, and employees of a corporation, as well as “temporary” insiders, such as attorneys, accountants, and consultants to the corporation. Under the “classical theory” of insider trading liability, a corporate insider violates Section 10(b) and Rule 10b-5 when he or she trades in the securities of the corporation on the basis of material, nonpublic information. Trading on such information qualifies as a “deceptive device” under Section 10(b), because “a relationship of trust and confidence [exists] between the shareholders of a corporation and those insiders who have obtained confidential information by reason of their position with that corporation.” That relationship “gives rise to a duty to disclose [or to abstain from trading] because of the ‘necessity of preventing a corporate insider from . . . tak[ing] unfair advantage of . . . uninformed . . . stockholders.’”
The Supreme Court has recognized that corporate “outsiders” can also be liable for insider trading under the “misappropriation theory.” Under this theory, a person commits fraud “in connection with” a securities transaction, and thereby violates Section 10(b) and Rule 10b–5, when he or she misappropriates confidential and material information for securities trading purposes, in breach of a duty owed to the source of the information. This is because “a fiduciary's undisclosed, self-serving use of a principal's information to purchase or sell securities, in breach of a duty of loyalty and confidentiality, defrauds the principal of the exclusive use of that information.” The misappropriation theory thus “premises liability on a fiduciary-turned-trader's deception of those who entrusted him with access to confidential information.” Under either the classical or misappropriation theory, a person can also be held liable for “tipping” material, nonpublic information to others who trade, and a “tippee” can be held liable for trading on such information.
Securities fraud, also known as stock fraud and investment fraud, is the unlawful practice of inducing investors to make investment decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Securities fraud whistleblower lawsuits include deceptive practices in the stock and commodity markets, and occur when investors are enticed to part with their money based on fraudulent misrepresentations.
Securities fraud whistleblower lawsuits include outright theft from investors and misstatements on a public company's financial reports as well as a wide range of other actions, including insider trading, front running and other illegal acts on the trading floor of a stock or commodity exchange. Evidence for a securities fraud whistleblower lawsuit may include:
False or misleading information on a company's financial statement;
False or misleading information on Securities and Exchange Commission (SEC) filings;
Lying to corporate auditors;
Stock manipulation schemes;
Embezzlement by stockbrokers;
Manipulation of a security’s price or volume;
Fraudulent or unregistered offer or sale of securities, including Ponzi schemes, high yield investment programs or other investment programs;
Brokerage Account and Retirement Account Fraud;
False or misleading statements about a company;
Failure to file required reports with the SEC;
Abusive naked short selling;
Theft or misappropriation of funds or securities;
Fraudulent conduct or other problems associated with municipal securities transactions or public pension plans; and
Bribery of foreign officials
Through new legislation the federal government is offering financial incentives to securities fraud whistleblowers and other financial fraud whistleblowers to step up and blow the whistle on properly reporting financial fraud including the above listed forms of securities fraud that lead to SEC violations and fines. These new whistleblower bounties can be collected by whistleblowers that properly report SEC violations, financial fraud, securities fraud, commodities fraud, and stimulus fraud.
Other forms of SEC Violations including reporting problems with a brokerage or advisory account; fraudulently preventing access to funds or securities; fraudulent order handling, trade execution, or confirmations; fraudulent fees, mark-ups or commissions; and inaccurate or misleading disclosures by financial professionals, may also lead to potential SEC bounties, if the fraudulent acts result in fines of over $1 million and are properly reported.
As a Confidential Whistleblower Reward Lawyer, Jason S. Coomer, commonly works with other powerful financial fraud and securities fraud whistleblower lawyers to handle large Securities Fraud Whistleblower Lawsuits, International Whistleblower Lawsuits, Medicare Fraud Whistleblower Lawsuits, Defense Contractor Fraud Whistleblower Lawsuits, Government Contractor Fraud Whistleblower Lawsuits, and other confidential whistleblower reward lawsuits. If you are the original source with special knowledge of fraud and are interested in learning more about a whistleblower reward lawsuit, please feel free to contact Confidential Insider Trade Whistleblower Reward Lawyer and Securities Fraud Insider Trading Whistleblower Lawyer Jason Coomer via e-mail message.