Worried About An Enforcement Action Due to Compliance Issues? TAKE THE ASSESSMENT

Every Office Has A Whistleblower Waiting For You to Slip Up

The SEC has awarded $2.5 million to an employee of a domestic government agency and $1.7 million to a company insider for providing ongoing information and continued assistance to the SEC.

The SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity. Whistleblowers are eligible for an award when they voluntarily provide the SEC with original, timely and credible information that leads to successful enforcement action. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid the SEC by securities law violators.

Whistleblower awards can range from 10% to 30% of the money collected when they monetary sanctions exceed $1 million.

Approximately $158 million has now been awarded to 46 whistleblowers who voluntarily provided the SEC with original and useful information that led to a successful enforcement action. As employees realize they have an incentive to alert the SEC to questionable behaviors, more and more whistleblowers are coming forward with tips.

Are you worried you could be next?

It is always a good idea to have a mock audit completed on your business so you know where you can improve and where you are doing well. A mock audit is a great way to start fresh and reassert your policies and procedures to ensure your business and employees are complying with federal and state securities law. Call us today to set up a mock audit of your business. 

Author Bio

Leila Shaver is the Founder of My RIA Lawyer, a law firm that provides compliance and legal consulting for financial institutions. With extensive experience as a securities attorney and compliance expert, she has served as Chief Compliance Officer and General Counsel to RIAs, BDs, and TAMPs with billions in assets under management.

Leila understands the challenges RIAs face and is committed to helping RIAs streamline their processes, mitigate risks, and ensure compliance with regulatory requirements. She received her Juris Doctor from Atlanta’s John Marshall Law School and is a West Georgia Young Lawyers’ Association member. Leila has received numerous accolades for her work, including the Carroll County Bar Association’s Outstanding Young Lawyer Award in 2017.

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