The numbers on the screen do not match the company’s public statements. A conversation you overheard in the boardroom confirms your suspicion: investors are being misled. In the high-stakes world of finance, integrity is everything, but so is your career.
You have information that could trigger a federal investigation and protect millions in investor capital, yet coming forward feels like a professional gamble. You require a legal partner who can navigate this complex environment with absolute discretion.
A Florida securities fraud whistleblower attorney at Brenton Legal provides the sophisticated legal strategy and employment law defense essential for exposing the truth while safeguarding your future.
Florida Securities Fraud Whistleblower Guide
Your insider’s briefing
- The Dodd-Frank Act created powerful whistleblower programs through the SEC and CFTC, offering substantial awards to individuals who report original information about securities violations.
- Whistleblowers may be eligible for an award of 10% to 30% of the monetary sanctions collected by the government when the sanctions exceed $1 million.
- Federal law allows whistleblowers to submit information to the SEC anonymously through an attorney, protecting their identity throughout the investigation.
- The law strictly prohibits employers from retaliating against employees for reporting securities fraud. Any retaliatory action can form the basis of a separate employment law claim.
Why Brenton Legal for Your Securities Fraud Claim
When your career and significant financial awards are on the line, the law firm you choose matters. Securities whistleblower claims demand a deep knowledge of complex financial regulations and steadfast employment law advocacy. Brenton Legal offers the focused representation required to navigate this high-stakes environment.
Dual advocacy: Securities and employment law
A securities whistleblower case has two fronts: the submission to the government and the defense against employer retaliation. Many firms can handle the former, but our foundation in employment law makes us uniquely equipped for the latter.
We build your whistleblower claim while simultaneously preparing a strategy to protect you from the professional fallout that may follow. This dual focus ensures all your rights are protected.
SEC & CFTC procedures
The SEC and CFTC whistleblower programs have unique rules, forms, and procedures. A misstep can invalidate your claim. Our attorneys are well-versed in these agency-specific requirements, from filing the initial Form TCR to communicating with agency staff during the investigation. We manage the process so you can focus on your career.
Upholding absolute discretion
We recognize that your confidentiality is paramount. Many whistleblowers wish to remain anonymous, a right protected by law when working with an attorney. We structure every communication and submission with the goal of shielding your identity and professional reputation from exposure.
Securities Whistleblower Law
The Dodd-Frank Act established formal whistleblower programs at the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). These programs are built on specific legal principles designed to encourage individuals with inside knowledge to come forward.
Defining “original information”
To qualify for an award, the information you provide to the SEC or CFTC must be “original.” This is a legal standard with a precise meaning. It means your information comes from your own independent knowledge or independent analysis.
Critically, it must be information that the government does not already have from another source, like a news report or a previous tip.
For instance, a compliance officer at a Jupiter-based investment firm who discovers internal emails detailing a plan to mislead investors possesses original information from independent knowledge.
Similarly, an external analyst who develops a proprietary algorithm that uncovers market manipulation possesses original information from independent analysis. This standard ensures awards go to those providing genuine, new intelligence to regulators.
The legal definition of “material, non-public information”
Many securities fraud cases, especially those involving insider trading, hinge on the concept of “material, non-public information.” “Material” means the information is significant enough that a reasonable investor would consider it important when making a decision to buy, sell, or hold a security.
Examples include unannounced merger plans, upcoming negative earnings reports, or a pending regulatory action.
“Non-public” means the information has not been disseminated to the general marketplace. An internal company memo is non-public; a press release is public. An employee who trades stock based on information from that internal memo before it becomes public is likely engaging in illegal insider trading, a serious violation that the SEC actively prosecutes.
The right to anonymity through legal counsel
One of the most powerful protections for a securities whistleblower is the right to submit a claim anonymously. However, this is only possible if a lawyer represents you.
Your attorney can file the required Form TCR on your behalf without revealing your name or identifying details to the SEC. This anonymity shields you from immediate professional backlash. Your employer will not know you are the source of the complaint, which prevents them from engaging in early retaliation while the government investigates.
While your identity might need to be revealed to the SEC later in the process to receive an award, this initial confidentiality is vital for your protection.
Actionable Fraud Under SEC & CFTC Jurisdiction
Financial misconduct can take many forms. A successful whistleblower claim hinges on providing specific, credible information about violations of securities or commodities laws. These agencies investigate a wide range of illegal activities that undermine market fairness.
Corporate accounting & financial statement fraud
This type of fraud involves the intentional manipulation of a company’s financial statements to deceive investors. It often aims to make a company appear more profitable than it truly is, thereby artificially inflating its stock price.
Common accounting schemes that can lead to a whistleblower claim are listed below. Providing evidence of these specific actions is vital.
- Improperly recognizing revenue before it is earned.
- Hiding company debts and liabilities in off-balance-sheet entities.
- Falsifying inventory or other assets to inflate the company’s value.
- Engaging in “channel stuffing” by shipping excess products to distributors to falsely boost sales figures.
Discovering these schemes often requires inside access to internal ledgers, sales reports, and executive communications. This is precisely the kind of information the SEC needs to build a strong enforcement action.
Illegal insider trading
Insider trading involves buying or selling a security while in possession of material, non-public information, in breach of a duty of trust. A tip to the SEC can expose these illegal trades.
For instance, a corporate executive who learns that their company is about to be acquired may not legally purchase stock based on that confidential news, nor may they tip off a friend or family member to do so.
Market manipulation schemes
This category includes activities designed to control or influence the price of a security artificially. This can involve spreading false or misleading information to drive a stock’s price up or down (“pump and dump” schemes) or creating artificial trading activity to create the illusion of high demand.
Foreign Corrupt Practices Act (FCPA) Violations
The FCPA is a major area for whistleblower claims. This law makes it illegal for certain companies and individuals to make payments to foreign officials to assist in obtaining or retaining business.
If you have knowledge of bribes paid to foreign officials, disguised as “consulting fees” or other sham expenses, you may have a strong FCPA whistleblower claim.
The Path of a Securities Whistleblower Claim
Submitting a tip is a formal legal process. It follows a structured path designed to ensure the information is credible and handled confidentially. Our firm manages this entire journey for you.
Step 1: Strategic evidence gathering with counsel
The foundation of any claim is the evidence. We work with you to confidentially gather and organize all relevant documents, emails, and data that support your allegations.
A key challenge here is obtaining evidence legally. We provide guidance on how to collect information you are authorized to access without violating company policies or employment agreements, which could create separate legal problems for you.
The goal is to build a powerful case for the SEC without exposing you to unnecessary risk.
Step 2: Crafting a compelling form TCR
Your information is submitted to the SEC using a Form TCR (Tip, Complaint, or Referral). This is a detailed legal submission, not a simple contact form. We meticulously craft a narrative that explains the fraudulent scheme, identifies the wrongdoers, and connects your evidence to specific violations of securities laws.
A well-drafted TCR that clearly and concisely lays out a “roadmap” for regulators is far more likely to be acted upon than a disorganized data dump.
Step 3: Navigating the government’s investigation
Once the Form TCR is submitted, SEC or CFTC attorneys will review it. If they find the tip credible, they may open a formal investigation, a process that can take months or years.
During this time, they may have follow-up questions or require clarification. We act as the intermediary for all communications, preparing you for any potential interviews and protecting your interests at every stage.
Step 4: The formal application for a whistleblower award
Eligibility for an award is not automatic. If your tip leads to a successful enforcement action where the SEC collects over $1 million, the agency will post a “Notice of Covered Action.”
We then must file a formal application (Form WB-APP) on your behalf within a strict deadline. This application is a legal argument, demonstrating how your original information was essential to the successful outcome and advocating for the highest possible award percentage based on your contribution.
FAQ for Florida Securities Fraud Whistleblowers
Can I submit a tip to the SEC anonymously?
Yes. The law allows you to submit a whistleblower tip anonymously, but only if you are represented by an attorney. Your lawyer can submit the tip on your behalf, protecting your identity from the SEC and your employer unless and until an award is issued.
Do I have to be an employee to be a whistleblower?
No. While many whistleblowers are current or former employees, you do not have to be an insider to qualify. Anyone with original, non-public information about a securities violation, such as a contractor, consultant, or even a victim of the fraud, may be eligible.
Is there a deadline for filing a securities whistleblower claim?
While there is no strict deadline for submitting the initial tip, you must act promptly. The SEC prioritizes timely information. Additionally, to be eligible for an award, you must be the first to report the specific misconduct. Waiting too long could mean someone else reports it first, disqualifying your claim.
What if the company is privately held?
The SEC’s authority is generally limited to publicly traded companies. However, securities fraud can still occur in private companies, especially if they are raising money from outside investors or have certain types of registered securities. An attorney can evaluate your specific situation to determine if the conduct falls under the SEC’s jurisdiction.
What does it cost to hire a whistleblower attorney?
Brenton Legal manages securities whistleblower cases on a contingency fee basis. This means you owe us nothing upfront. We are paid a percentage of the whistleblower award if, and only if, we help you successfully secure one. The confidential consultation is always free.
Protecting Market Integrity Starts with You
The decision to report financial fraud is a courageous one. You are not only protecting investors and upholding the law, but you are also upholding the integrity of our financial markets.
Contact Brenton Legal at 954-639-4464 or complete our secure online form. We are ready to provide the confidential guidance and steadfast advocacy you need to move forward with confidence.
Brenton Legal PA. – Florida Office Location
Address: 1070 E Indiantown Rd Suite 400, Jupiter, FL 33477, United States
Contact No: 9544663871