Understanding The SEC Whistleblower Program

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Source: en.wikipedia.org

Whenever you watch the late-night news with your family and see a report about a witness or a former accomplice of a corporate crime coming out as a whistleblower, don’t you wonder how they managed to be on that side of the law?

It is no secret, after all, that many people who know something about a massive anomaly used to clamp their mouths shut during an interrogation. They often fear of losing either their job or their life; that’s why they tend to feign ignorance when asked about the case. However, thanks to a ruling that allows the United States’ Security and Exchange Commission (SEC) to harbor such noisemakers, these folks have since found their voice to help the law enforcers bring violators to justice.

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Source: flickr.com

What Is The Dodd-Frank Act?

The Dodd-Frank Act, which is more formally known as the Dodd-Frank Wall Street Reform and Consumer Protection Act, is a regulation that aims to boost the confidence of possible informants to speak out regarding the circumstance. As mentioned above, it is quite difficult to find someone who is willing to testify against a lawbreaker, especially if that person happens to be famous or holds an executive position. The fact that the Congress passed this legislation in 2010 entails that more high-profile cases may become resolved sooner than later.

What Are The Perks Of Becoming A Whistleblower For The SEC?

The Dodd-Frank Act offers a real assurance to the informer that their life, as well as their family’s, will not be put in the danger once they agree to enter the program. It is common knowledge, after all, that whistleblowers receive death threats and other malicious words from the individuals that they are going against. Some folks cannot even leave their house or do other normal activities because they feel afraid of what might happen once they step out in public. Thus, the Security and Exchange Commission offers a few compensations in exchange for whatever kind of help that the noisemaker can provide.

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Source: flickr.com

1. Tell The Truth Without Fear

The government immensely values relators because the number of economic violators who have not been penalized for their crimes is far too high. As they courageously come forward with everything they know about the inconsistencies that they have noticed in the industry, these individuals gain the confidence of the servers of justice.

Furthermore, a potential whistleblower ought to realize that talking about anomalies that may have taken place in their company is not a violation of the confidentiality agreement which they have possibly signed in the past. It may apply to the methods and products or services within the company, but any action that violates the law should never be hidden.

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Source: flickr.com

2. Have A Lawyer Or Counsel Represent Them In Court

Due to the delicateness of the situation, an informant can decide not to appear in person during the court proceedings and conceal their identity to all the parties involved. If they choose either, the Commission recognizes the decision and assigns a competent lawyer who can relay the sworn statement of the whistleblower in front of the judge and everyone else.

Considering the situation is too complicated, and the relator does not want the SEC to know who they are, the informant can ask their legal counsel to come forward on their behalf. No one will find out their name or address – not even when the financial incentive is given. As long as the attorney can provide all the documents that back up the whistleblower’s statement, the choice to remain anonymous is acceptable.

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Source: flickr.com

3. Obtain Monetary Reward Once The Case Clears Up

When you agree to voice out your knowledge about a specific anomaly, it is highly unlikely that you will be able to work while the trial is still ongoing. There may be pages after pages of narrative to prepare with the counsel; it may also be too risky for you to go out often. Hence, your source of income may get cut off momentarily, along with your freedom to roam anywhere without security personnel.

Such a sacrifice, however, will become well-compensation after the case closes and the government gets back the money looted by the law offenders. According to a report, one of the highest rewards was 22 million dollars, and it was given to a former Monsanto financial executive who spoke about the company’s accounting violations and caused them to pay a lump sum of 80 million dollars as a penalty.

To Wrap Up

In case you possess information regarding fraud or another corporate offense in the United States, you should consider coming out and entering SEC’s Whistleblower Program. Your statement might become crucial evidence against the lawbreakers and perhaps prevent an economic crisis from taking place. Moreover, turning into a whistleblower entails that the government will do everything to keep you and your loved ones safe throughout the court proceedings. If we are honest, the protection that you will gain is more valuable than the monetary reward that you will receive afterward.