Market Manipulation Whistleblower Attorney
The public relies on honest and fair markets in which to make their investments and thereby participate in America’s economy. When those markets are distorted as the result of manipulation, investors lose confidence – and sometimes their money. Market manipulation is an umbrella term that covers a multitude of fraudulent activities which undermine the value of people’s investments. Ultimately, market manipulation is about the unjust enrichment of manipulators at the expense of investors who trusted the system.
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) does what it can to uncover market manipulation schemes and insider trading, put an end to them, and prosecute or fine the offending parties. However, the SEC and CFTC can only do so much with its limited staff and budget. This is where whistleblowers, private individuals who have inside knowledge about market manipulation schemes, other federal securities laws violations, such as Securities Exchange Act violations, play a crucial role in stopping the securities fraud. Not only can you help end these fraudulent schemes and potentially save others from being victims, you may be able to claim a substantial reward for doing so. Working with the whistleblower law firm of Oberheiden P.C., you can make the strongest case for the most reward possible.
What Is Market Manipulation?
There is not a single type of activity that the SEC or CFTC defines as market manipulation. Rather, this broad term applies to various activities that investment firms, brokers, and other market participants engage in to distort the market in a way which allows them to improperly reap financial gains. Manipulating the market involves illegal, fraudulent conduct that is intended to deceive investors by affecting securities in a way that artificially increases or decreases their value.
What follows are only a few common examples of market manipulation. If you have evidence that any of these are occurring, you should speak with our team to see if you may have a whistleblower case:
- Spreading false information: Deliberately spreading false information with the intent of affecting the value of a stock is market manipulation. It is unfortunately easier than ever to lie and mislead others about a company’s leadership, legal issues affecting the company, and other matters. The “pump and dump” is a classic example of this type of manipulation with significant consequences.
- Creating false supply and demand: Using increasingly sophisticated technology, including AI (artificial intelligence), scammers can create a false impression that a commodity is wanted more or less than it really is. Such fraud leads to an artificial change in the price of the commodity that can unfairly benefit dishonest investment firms and professionals.
- Spoofing: A specific way to create a false sense of supply and demand is spoofing, the practice of placing a large order for a security and then canceling it immediately before the trade is executed. When others are misled by this practice to place their own orders, a dishonest trader can take advantage of the manipulated price.
- Bear raid: A bear raid occurs when traders intentionally sell large amounts of a security to force its price down. This may be done to create a fraudulent short position which drives away other traders who were waiting for long positions.
- Cornering the market: This refers to acquiring a large position in a commodity so the trader can then control its price. Doing commodities fraud makes it much easier to manipulate the value of the commodity by selling or buying large quantities to create artificial supply and demand.
- Wash trading: If a trader engages in false trading activity, the resulting transactions may give the illusion of activity and liquidity affecting a specific security. As a result of wash trading, investors may incorrectly believe there is stronger demand for a security than there actually is.
How Does the SEC Whistleblower Program Work?
The SEC and CFTC have whistleblower programs which allow individuals to report information concerning market manipulation schemes. If the whistleblower’s information leads to a successful enforcement action that results in at least $1 million in sanctions being recovered, the whistleblower may be able to claim a portion of the money as a reward.
There are some basic requirements to blowing the whistle and qualifying for a reward. They include:
- The information must be more than speculative: Hearsay or beliefs without evidence will not qualify you for a reward. You will need to have concrete proof that someone is engaged in some form of market manipulation.
- The information must be original: “Original” essentially means that the government and the public do not already know about it. If the information is already known by the SEC, CFTC, or the general public, it won’t qualify.
- You must provide the information to the government voluntarily: This means that you are the one to step forward and initiate contact with the government to blow the whistle. If the SEC, CFTC, or some other agency obtains the information from you because of a demand letter, subpoena, or request, it will likely not be sufficient.
- The information must lead to a successful enforcement action: The government must use the information that you provide to either open a new investigation or further an existing one. Also, it must be sufficient to result in the collection of sanctions totaling at least $1 million.
Put our highly experienced team on your side
Dr. Nick Oberheiden
Founder
Attorney-at-Law
Lynette S. Byrd
Former DOJ Trial Attorney
Partner
Brian J. Kuester
Former U.S. Attorney
Hon. Kevin McCarthy
55th Speaker, U.S. House of Representatives (ret.)
Government Consultant
Mike Pompeo
Of Counsel
Former U.S. Secretary of State
John W. Sellers
Former Senior DOJ Trial Attorney
Linda Julin McNamara
Federal Appeals Attorney
Nicholas B. Johnson
Former Prosecutor
Roger Bach
Former Special Agent (DOJ)
Chris J. Quick
Former Special Agent (FBI & IRS-CI)
Michael S. Koslow
Former Supervisory Special Agent (DOD-OIG)
Ray Yuen
Former Supervisory Special Agent (FBI)
Why Hire an SEC Whistleblower Attorney?
Although you are not required to retain a whistleblower attorney to assist with your market manipulation claim, there are a few advantages to doing so. When you hire Oberheiden P.C. to represent you, we assist by:
- Reviewing the evidence you have so we can determine whether it demonstrates market manipulation
- Discussing which whistleblower program is best, especially since there may be different options (e.g. the SEC and CFTC programs)
- Obtaining additional evidence as your claim proceeds which can bolster what you originally provided
- Filing the appropriate paperwork and reporting your information as required by the whistleblower program
- Working on your behalf with the government to ensure continued communication and cooperation on your part
- Representing you in all communications with the government and its attorneys
- Helping you handle any workplace retaliation you may experience because of your whistleblower status
- Negotiating with the government for the maximum reward amount
The law rewards those whistleblowers who are the first to report what they know, so don’t delay getting started on your market manipulation claim. Contact our experienced and dedicated attorneys today.
FAQ: Filing a Market Manipulation Whistleblower Complaint
What Is the Amount of a Whistleblower Reward?
The amount of the reward will vary from one market manipulation case to another. Generally, you can expect to claim a reward of anywhere from 10% to 30% of whatever the government brings in from an enforcement action. However, the amount is negotiable, and your SEC whistleblower lawyer will work to negotiate for the highest amount possible.
Which Factors Affect the Value of My Information?
The better your information, the more likely it is that you will be able to claim a higher whistleblower reward. You will want to demonstrate that your information was detailed, compelling, and useful to the government’s enforcement action. You will also want to cooperate with the government in the likely event that investigators ask for more information from you. Finally, if the evidence you have proves significant market manipulation affecting many individuals, it is more likely to result in a larger reward.
What Counts as Workplace Retaliation?
Workplace retaliation because of your status as a whistleblower can occur in different ways. You might lose your job, be demoted, see your hours or pay cut, lose out on a promised promotion, or have reduced or denied access to company benefits and facilities. Some forms of retaliation are more subtle than others. Our legal team can review your situation and assist with enforcing your legal rights and whistleblower protection if you face retaliation as a market manipulation whistleblower.
Can I Anonymously Report What I Know?
Yes, you are allowed to anonymously report evidence you have of market manipulation. However, to do so you must retain an attorney who can communicate on your behalf with the government. Our firm understands the risk you are taking to your professional and personal life by stepping forward as a whistleblower, so we go to great lengths to protect your anonymity.
How Long Will My Claim Take?
Whistleblower cases tend to take a significant amount of time because the government must thoroughly investigate your evidence along with other information it may have or later obtain. The government does this because it wants to make sure both that it has strong evidence and that as many parties as possible are brought to justice for manipulating the markets. We will work where possible to expedite the process.
How Can I Improve My Chances of a Significant Whistleblower Reward?
If you have evidence of someone engaged in market manipulation, it is important that you do not take too long to report it. If someone else has the same information and acts on it first, they will cut you out of a reward. We work hard to protect the value of every whistleblower’s claim, and it starts with reviewing the information they have to determine if it will qualify. Don’t hesitate to reach out to us even if you are unsure whether the evidence you have is sufficient to make you eligible to become a whistleblower.
