Attorney for SEC Whistleblower Protections

Becoming a whistleblower is not an easy choice to make. Every business has its own unique culture that encourages profit seeking but sometimes discourages compliance with the law. Additionally, many firms have an unspoken rule that if you see something, don’t say anything. It can be intimidating to step forward and expose illegal activity, especially when you know that it could mean significant fines, jail time, and professional ruin to those you report.

But the concerns don’t end there. Blowing the whistle can bring unwanted attention to a professional who is simply trying to make their mark in the securities or financial industry while earning a living. Our firm understands that when you entered the workforce, you only wanted to build a career. It was never your desire to report fraudulent and unethical behavior, and maybe you even wish you had never found out about it in the first place.

The whistleblower attorneys of Oberheiden P.C. completely understand the apprehension you have for your future and how your well-being could be threatened by a lost job, demotion, ostracism, and other professional repercussions. But we also encourage you to learn more about how the SEC’s whistleblower programs can protect your anonymity and give you the right to take legal action if you face retaliation. For all questions related to becoming a whistleblower, count on our experienced SEC whistleblower lawyers.

What Is Workplace Retaliation?

The Securities and Exchange Commission (SEC) oversees a broad whistleblower program that allows individuals to report insider trading, securities fraud, market manipulation, and numerous other illegal activities and failures to comply with the nation’s securities laws and regulations. The various laws that give the SEC this authority also have built-in safeguards to protect against retaliation. Retaliation essentially means taking adverse action against an employee on the basis of that person’s status as a whistleblower and/or their cooperation with a government investigation or enforcement action.

Retaliation can take many different forms, and may include:

Termination: Firing or discharging someone from their position because they blew the whistle on illegal conduct is an obvious example of workplace retaliation, and the timing often makes it clear that the intention was to punish the employee.
Suspension: Suspending an employee from their job can not only deprive the worker of their income, it can leave a negative mark on their record. Often, the punishment is intended to harm the whistleblower professionally in the event they seek employment elsewhere.
Reduced hours: Cutting an employee’s hours on the job, or refusing to call them into work when the employer knows they are available, is another example of retaliation. Employers may do this to avoid the most obvious form of punishment (termination) while still harming the worker by depriving them of income.
Demotion or denial of a promotion: Demoting an employee, or denying them a scheduled or promised promotion, can also have professional consequences long into the future. Employers often fabricate reasons for this type of discipline to mask its true intent: punishment for being a whistleblower.
Harassment and discrimination: Employers know that many of the above actions could land them in hot water, so they may openly harass or discriminate against the whistleblower instead. This is frequently done to try to drive the whistleblower to quit their job since terminating them would be too obvious.
Denial of company benefits and resources: Employers frequently provide a number of benefits and resources to their employees to help them advance professionally, but a whistleblower could suddenly see access to these cut off.

Your Right to Confidentiality and Anonymity

As a whistleblower, you naturally want to avoid any of the above and other types of employment retaliation. That’s one reason the SEC goes to great lengths to protect the identity of whistleblowers. Although the SEC may be required to disclose your identity to other government agencies, either to pass the case on to them or in response to a court order, those other entities must also guard your identity.

Still, many whistleblowers would rather be completely anonymous. The law allows you to anonymously report fraudulent and illegal business practices to the SEC. However, if you wish to claim a whistleblower reward, you must have a legal representation. Our whistleblower team can act as an intermediary between you and the SEC, ensuring you cooperate with the government while keeping your identity private.

Your Right to Take Action Against Retaliation

Despite the above safeguards and protections, some employers are determined to find out who blew the whistle on their activities – and to discipline those who do. Although this can be an unsettling prospect, we emphasize that the law does allow you to file whistleblower retaliation claims against an employer who engages in this behavior.

An employer that is found liable for illegal retaliation can face significant consequences for disobeying the law and punishing or attempting to punish those who report illegal securities practices. A whistleblower who has experienced retaliation can sue for back pay, plus interest, for income they were deprived of due to the retaliatory action. An employee who was fired, suspended, or demoted can also be reinstated to their previous position. Finally, the whistleblower can compel the employer to pay the costs of the lawsuit, including court expenses and attorneys’ fees.

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)

Qualifying as an SEC Whistleblower

To become an SEC whistleblower who is protected by the law’s confidentiality, anonymity, and anti-retaliation provisions, an individual must voluntarily report original information to the SEC about a violation of the law or failure to comply with federal securities laws or regulations. The information that the whistleblower provides should be specific and detailed enough to enable the SEC to either open a new investigation or to progress with an existing one. Also, the whistleblower must be the first one to report the information.

Using the evidence that the whistleblower provides, the SEC has to be able to successfully pursue an enforcement action against the party or parties that are breaking the law or not complying with the rules. Further, the SEC must recover sanctions of at least $1 million, from which the whistleblower can later claim a reward (generally 10% to 30%) if they meet all of the requirements of the SEC whistleblower program.

Oberheiden P.C. is one of the nation’s most trusted whistleblower law firms. Our SEC whistleblower lawyers help individuals identify information that may help the SEC enforce securities laws and which could qualify the whistleblower for a substantial monetary reward. We represent whistleblowers, handle all paperwork, and advocate for the highest reward amount allowed under the law. To get started with your SEC whistleblower claim, complete our online contact form today.

FAQ: SEC Whistleblower Protections

Can My Employer Make Me Sign an Agreement Preventing Me From Becoming a Whistleblower?

Congress has worked hard over the years to encourage whistleblowers to report breaches of the nation’s securities laws. Among the provisions that have been enacted are financial incentives for whistleblowers and confidentiality protections. An employer’s request to its employees to waive their rights as a whistleblower may violate federal law and therefore be unenforceable. If you have signed such an agreement or you have been asked to sign one, talk to us about your legal rights.

What Do I Have to Prove to Claim Damages for Retaliation?

To prevail in a lawsuit, a whistleblower employee must prove, first, that they engaged in a protected activity under anti-retaliation laws. Next, the employee has to show that their employer took an adverse employment action against them like the ones listed above. Finally, there must be a causal link between the protected activity and the adverse action. Put another way, the whistleblower has to demonstrate that they were disciplined or punished because of their status as a whistleblower and not for a legitimate work-related reason.

What Is “Protected Activity”?

Protected activity in the context of anti-retaliation laws includes becoming a whistleblower by reporting or disclosing illegal activity to the SEC or another government agency. It may also include participating in an SEC investigation or cooperating as a witness in one. Complaining of work-related harassment or discrimination, or some other retaliation, can itself also be protected.

Is There a Time Limit to File a Retaliation Claim?

You do not have an unlimited amount of time to file a claim alleging that you experienced unlawful retaliation as an SEC whistleblower. There is a deadline, known as a statute of limitations, which applies to these lawsuits. Generally, a whistleblower will have three years from the date of the retaliation to file a lawsuit, although this time limit may be different in some cases. If the lawsuit is not filed by the time the statute of limitations expires, the claim may be dismissed and the whistleblower may be permanently deprived of justice. However, you should take action well before the deadline since it can be harder to make a good case in court if you wait too long.

Why Should I Hire a Whistleblower Law Firm to Represent Me?

Hiring a knowledgeable whistleblower law firm is the first step you should take if you discover evidence that your employer is violating securities laws or regulations. Your SEC whistleblower attorney will review the information you have, determine if it meets the SEC’s requirements for participating in its whistleblower program, and take care of all paperwork related to your claim. We can represent you in communications with the SEC and negotiate on your behalf for the maximum whistleblower reward allowed under the law. Finally, we can protect the anonymity and confidentiality of our SEC whistleblower clients and help them take advantage of the laws that protect them from employment retaliation.