Many families lost everything in the 1929 stock market crash and the subsequent Great Depression. The Act intended to protect these investors and to require investment companies to operate in their client’s best interests.

It is also known as the “40 Act.”

President Franklin D. Roosevelt signed The Act into law. While the Act has been updated many times, its core purpose remains the protection of investors and the restoration of trust in the US financial markets.

The Investment Company Act Of 1940 Explained

The Investment Company Act of 1940 set the rules for companies whose primary business is investing in securities, such as stocks and bonds, on behalf of others. This includes mutual funds, exchange-traded funds (ETFs), and closed-end funds.

Before this law, there were few rules to prevent fund managers from acting in their own interests instead of their investors. The Act was designed to:

• Prevent fraud and abuse by investment companies.
• Ensure that investors receive accurate and transparent information about where their money is being invested.
• Build confidence in the financial system after many people lost their savings in the market crash.

The Act provides several key protections for people who invest in mutual funds and similar products:

1. Transparency and Disclosure

• Investment companies must clearly explain their investment goals, strategies, and risks.
• They must regularly update investors about their financial health and performance.
• This helps investors make informed decisions and understand what they’re buying.

2. Registration and Oversight

• Companies must register with the Securities and Exchange Commission (SEC), which oversees their activities.
• The SEC can investigate and act if companies break the rules.

3. Independent Oversight

• Investment companies are required to have a board of directors, and most of these directors must be independent and not involved with the company.
• Outside members of a company’s board of directors are more objective and help to ensure that the decisions are made in the best interest of investors, not just the company’s managers.

4. Limits on Risky Behavior

• The Act limits how much investment companies can borrow (use of leverage), which helps prevent them from taking excessive risks with investors’ money.
• It also sets rules to prevent conflicts of interest and self-dealing by fund managers.

5. Fiduciary Duty

• Fund managers must act in the best interests of their investors, not their interests.
• There are strict rules about how they handle investors’ money and assets.

The Investment Company Act of 1940 is a framework for companies that pool investors’ money to invest in the stock market. It ensures that these companies are honest and transparent, putting investors’ interests first. Thanks to this law, investors have more protection against fraud, hidden risks, and mismanagement when they invest in mutual funds and similar products.

What Does This Mean For The Individual Investor?

Whether you’re a sophisticated and experienced investor or someone just beginning your investment journey, The Investment Company Act of 1940 means:

• Safer Investing: The Act’s rules help protect your savings from fraud, mismanagement, and hidden risks.
• Informed Choices: You receive clear, regular information about where your money is invested and how it performs in those investments.
• Fair Treatment: The law ensures that all investors are treated equitably and have a voice in fund governance, regardless of their account size.
• Confidence in the System: These protections help build trust in the financial markets, making it easier for everyday people to invest for retirement, education, or other goals.

The Investment Company Act of 1940 acts as a safety net for everyday investors, making the world of mutual funds and ETFs more transparent, fair, and secure. This has enabled millions of Americans to invest with greater confidence and peace of mind.

Retaining Experienced SEC Whistleblower Attorneys

Whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced SEC counsel may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.

Silver Law Group and the Law Firm of David R. Chase jointly have experienced SEC whistleblower lawyers, including a former SEC Enforcement Attorney, so you always have guidance throughout the process. Our SEC whistleblower attorneys can assist if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.

Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.

In many of our blogs about SEC whistleblowers who receive a financial award from the SEC, the early submission and voluntary disclosure of information is a key component of this process. A whistleblower who uncovers misconduct or other wrongdoing should report this information internally to the company, if appropriate, as well as to the SEC, as soon as possible. Sending this information without a request and promptly is a requirement of the SEC’s Office of the Whistleblower’s program. One whistleblower recently discovered why acting in this order was very important.

Case Facts

An individual working for an unidentified company discovered that it was making false and misleading statements to its investors regarding compliance with a specific set of policies. Even though the company indicated in its public statements that it would be compliant and adopt these provisions, the company failed to do so.

The individual in this case then contacted a media outlet to discuss both the underlying misconduct and the failure to comply with these policies. The media outlet then published an article identifying both the individual and the company involved. Staff from the Securities and Exchange Commission then opened its investigation after reading the article.

Two days after publication, SEC staff contacted the individual directly to ask questions and obtain additional information. Following contact from SEC staff, the individual then submitted a Form TCR to the Commission that included the same information and allegations they previously submitted to the media outlet.

Ultimately, the SEC began cease-and-desist proceedings and settled an administrative action against one of the company’s subsidiaries. The SEC discovered that the subsidiary had made material misstatements after failing to adopt the policies and procedures designed to prevent the violations that occurred.

The Whistleblower’s Claim

When the SEC’s Office of the Whistleblower posted a notice for the Covered Action on its public website, the individual submitted a timely whistleblower claim for an award. After review, the Claims Review Staff (CRS) issued a Preliminary Determination that denied this request for an award.

This individual knew of the misconduct and failed to report it to the SEC, only offering when contacted. Additionally, the individual provided this information to the media outlet rather than the SEC, allowing it to be publicly disseminated in an article. SEC staff learned of the misconduct by the company after reading the article and initiated its investigation.

Because the individual later submitted the TCR with the same information, but only after the SEC staff contacted them, it did not fall under the definition of “voluntary.”

The SEC’s Reasoning

The SEC’s “voluntary” rule is clearly stated on the Whistleblower website. Eligibility for an award is determined by information provided to the SEC before staff contacts the individual. Once the SEC makes contact requests for this information, it is no longer “voluntary” as required by the rules.

The individual providing the information believed their participation followed the rules after multiple statements from both the SEC staff and a related agency that their participation was voluntary. But what they did not understand was that although their continued participation was voluntary, it was only after the SEC made contact, not before. This was the deciding factor.

Even if legal counsel is representing the individual in an action, they must provide their information first to the SEC, regardless of whether they report internally. Submitting the TCR after an SEC request invalidates the “voluntary” aspect of submission, even if it was timely. Based on this rule, the CRS rejected the individual’s claim of a timely submission.

Retaining Experienced SEC Whistleblower Attorneys

Whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced SEC counsel may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.

Silver Law Group and the Law Firm of David R. Chase jointly have experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.

Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.

The whistleblower notified their immediate supervisor and the company’s Board of Directors. They also submitted their information to the SEC within 120 days of notifying the company and worked with SEC staff throughout the investigation. They voluntarily provided this original information to the SEC. Their continued assistance included additional relevant information and critical testimony that led to the success of the investigation and the covered action.

Because of this whistleblower’s considerable assistance, the SEC’s covered enforcement action included charges of:

• Fraudulent conduct
• Material misrepresentation and omissions to investors regarding their investments
• Breaches of fiduciary duties
• Misappropriation of investor funds by a manager

The ultimate award was a percentage of the administrative funds collected from the company as fines and other sanctions. Recovered investor funds are returned to the investors when possible and are not used to pay whistleblower awards.

Retaining Experienced SEC Whistleblower Attorneys

SEC whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced SEC counsel may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.

Silver Law Group and the Law Firm of David R. Chase jointly have experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.

Contact us using our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This arrangement means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have an incentive to help you collect the maximum award available.

This whistleblower provided information, ongoing assistance throughout the investigation, multiple meetings with SEC staff and another unnamed agency, along with sworn testimony.

• Covered Action 1 involved a cease-and-desist order against a company after the SEC discovered that it was misleading investors about its successes in public statements and disclosures. The SEC discovered that these were false statements that claimed financial successes. Additionally, the company was engaged in fraudulent and unauthorized activities. The company paid a civil penalty to settle this action.
• Covered Action 2 included a cease and desist regarding a former executive who knew or should have known about the company’s misleading and false statements. This executive learned about the business unit’s misconduct and that it presented a conflict with the company’s public statements. This covered action saw the executive pay a civil penalty to settle this action.
• Covered Action 3 was a litigated action against a second former executive who publicly made statements about the company that were known to be “materially false and misleading.”  This executive neither admitted nor denied these allegations, paid both a civil penalty as well ordered to pay an additional amount to settle the action.

Claims by several other joint claimants were denied by the Claims Review Staff.

Retaining Experienced SEC Whistleblower Attorneys

Whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced SEC counsel may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.

Silver Law Group and the Law Firm of David R. Chase jointly have experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.

Amongst other successes, our team of lawyers represented an SEC whistleblower who earned a nearly 20 million dollar SEC whistleblower award in 2026.

Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.

The whistleblower cooperated extensively with the SEC throughout a multi-year investigation, providing crucial analysis and insight. The SEC’s investigation culminated in a settled enforcement action exceeding $75 million.

“The SEC was unaware of the alleged misconduct until the whistleblower reported it. Motivated by a desire to see justice served, the whistleblower provided the SEC with information and tireless cooperation that proved vital to its efforts,” said David R. Chase, Principal of the Law Firm of David R. Chase.

“We are thrilled for our client, who expended a great deal of time and energy to report and explain how a major financial institution is alleged to have taken advantage of its retail mutual funds and placed profits ahead of compliance, resulting in a substantial monetary sanction,” said Scott L. Silver, Managing Partner of Silver Law Group.

About The SEC Whistleblower Program

The SEC Whistleblower Program has awarded over $2 billion to whistleblowers since its creation in 2010. Congress established the program to incentivize individuals to report federal securities violations, including market manipulation, Ponzi schemes, and accounting fraud.

Whistleblowers may be insiders, short-sellers, investors, or any individual who provides original analysis of public information that leads to an enforcement action. If successful, whistleblowers may receive an award of between 10% and 30% of sanctions collected on a judgment of at least $1 million.

The Importance Of Retaining Experienced SEC Whistleblower Counsel

Retaining experienced SEC whistleblower counsel may significantly increase the likelihood that the SEC will initiate an investigation based on a tip and lead to a financial award. Individuals who wish to remain anonymous must be represented by legal counsel.

Silver Law Group and the Law Firm of David R. Chase have forged a strategic co-counsel alliance to represent SEC Whistleblowers. Their SEC whistleblower attorneys assist individuals who have information regarding investment fraud or other violations of federal securities laws.

David Chase is a former SEC Prosecutor, an Adjunct Professor of Law at the University of Miami School of Law, and the principal of the Law Firm of David R. Chase. Scott Silver is the managing partner of Silver Law Group, chair of the Securities and Financial Fraud Group of the American Association of Justice, a PIABA Board Member, and a member of the National Trial Lawyers Association. Both are members of the Anti-Fraud Coalition.

Individuals seeking a no-cost consultation may submit an inquiry through the firm’s online contact form or by calling (800) 975-4345. The firms operate on a contingency fee basis, with fees paid only upon receipt of an SEC Whistleblower Award.

In many of our blogs about SEC whistleblowers who receive a financial award from the SEC, the early submission and voluntary disclosure of information is a key component of this process. A whistleblower who uncovers misconduct or other wrongdoing should report this information internally to the company, if appropriate, as well as to the SEC, as soon as possible. Sending this information without a request and promptly is a requirement of the SEC’s Office of the Whistleblower’s program. One whistleblower recently discovered why acting in this order was very important.

The SEC Whistleblower Case Facts

An individual working for an unidentified company discovered that it was making false and misleading statements to its investors regarding compliance with a specific set of policies. Even though the company indicated in its public statements that it would be compliant and adopt these provisions, the company failed to do so.

The individual in this case then contacted a media outlet to discuss both the underlying misconduct and the failure to comply with these policies. The media outlet then published an article identifying both the individual and the company involved. Staff from the Securities and Exchange Commission then opened its investigation after reading the article.

Two days after publication, SEC staff contacted the individual directly to ask questions and obtain additional information. Following contact from SEC staff, the individual then submitted a Form TCR to the Commission that included the same information and allegations they previously submitted to the media outlet.

Ultimately, the SEC began cease-and-desist proceedings and settled an administrative action against one of the company’s subsidiaries. The SEC discovered that the subsidiary had made material misstatements after failing to adopt the policies and procedures designed to prevent the violations that occurred.

The SEC Whistleblower’s Claim

When the SEC’s Office of the Whistleblower posted a notice for the Covered Action on its public website, the individual submitted a timely whistleblower claim for an award. After review, the Claims Review Staff (CRS) issued a Preliminary Determination that denied this request for an award.

This individual knew of the misconduct and failed to report it to the SEC, only offering when contacted. Additionally, the individual provided this information to the media outlet rather than the SEC, allowing it to be publicly disseminated in an article. SEC staff learned of the misconduct by the company after reading the article and initiated its investigation.

Because the individual later submitted the TCR with the same information, but only after the SEC staff contacted them, it did not fall under the definition of “voluntary.”

The SEC’s Reasoning

The SEC’s “voluntary” rule is clearly stated on the Whistleblower website. Eligibility for an award is determined by information provided to the SEC before staff contacts the individual. Once the SEC makes contact requests for this information, it is no longer “voluntary” as required by the rules.

The individual providing the information believed their participation followed the rules after multiple statements from both the SEC staff and a related agency that their participation was voluntary. But what they did not understand was that although their continued participation was voluntary, it was only after the SEC made contact, not before. This was the deciding factor.

Even if legal counsel is representing the individual in an action, they must provide their information first to the SEC, regardless of whether they report internally. Submitting the TCR after an SEC request invalidates the “voluntary” aspect of submission, even if it was timely. Based on this rule, the CRS rejected the individual’s claim of a timely submission.

 Retaining Experienced SEC Whistleblower Attorneys

Whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced SEC counsel may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.

Silver Law Group and the Law Firm of David R. Chase jointly have experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.

Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.

Although there were seven claimants in this case, only two were awarded based on timely and original information submitted to the CFTC, which led to the case’s success. Both whistleblowers continued to provide considerable assistance to CFTC staff, affiliated law enforcement, and other departments throughout the case, from its inception to its conclusion.

The remaining five were denied an award since no one contributed to the case resolution.

The CFTC’s recent award illustrates the impact of tips in complex commodities and derivatives cases, where fraud often spans borders and markets. In fiscal year 2023 alone, the agency received over 1,500 whistleblower tips, reflecting growing awareness of the program among market participants and insiders. Many modern cases involve digital assets, spoofing, and manipulative trading strategies, underscoring the CFTC’s expanding focus beyond traditional futures markets.

Awards like this one are also designed to incentivize continued cooperation throughout an investigation, not just a one-time disclosure. Whistleblowers frequently help interpret complex trading records, explain internal communications, and identify additional witnesses or schemes. The CFTC has noted that tips sometimes prompt parallel actions by other domestic or foreign regulators, multiplying the potential impact of a single report and increasing the overall deterrent effect in global commodities markets.

Retaining Experienced CFTC Whistleblower Attorneys

Whistleblowers help everyone by notifying the CFTC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced counsel may greatly increase the probability that the CFTC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.

Silver Law Group and the Law Firm of David R. Chase jointly have experienced CFTC and SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our attorneys can help if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.

Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.

How is the SEC’s flagship program faring under the second Trump administration? To answer this question, Scott Silver of Silver Law Group, and David Chase of The Law Firm of David R. Chase discussed this issue in a recently published article on Law360 which has been widely disseminated throughout the whistleblower community. Considered to be two of the best SEC whistleblower attorneys in the country, Scott and David routinely speak at industry conferences, community events and podcasts about the SEC whistleblower program, Ponzi schemes, and other investment fraud cases.

Will The New Administration Change Things?

Since beginning in January, 2025, there have been a variety of changes to nearly every corner of every governmental agency, including the SEC. The next question is how governmental cutbacks and organizational realignments impact the program. Is the SEC reducing or rescinding its whistleblower program? Not necessarily.

Fortunately, the news is not all bad. The SEC’s Whistleblower Program is continuing as before while the agency improves and refines its internal processes. The agency is still issuing whistleblower awards, but has increased scrutiny when evaluating claims. Therefore, whistleblowers must be especially vigilant about presenting their information.

Tighter Requirements, Higher Standards At The SEC

In 2025, the SEC issued 31 denials for claims just between April 21st and July 15th. At least 55 claimants were impacted. This was the program’s highest number of denials since its inception. This increase in denials raises questions about whether the program is changing. However, despite the large number of denials, scratching below the surface reveals the SEC rejected a large number of claims because the whistleblower clearly did not follow SEC rules and procedures or did not submit material information to the SEC whistleblower office.

Anyone interested in becoming an SEC whistleblower must understand the SEC’s rules and regulations and follow them exactly so that their claim is seen. Not only must the information be valuable, but the claimants must also adhere to the SEC’s set processes for submitting information and meet its statutory requirements. The SEC is increasingly going “by the book” for whistleblower cases and closely scrutinizing submissions. Exceptions that were previously made may not be made in the future.

One of the reasons for tightening the criteria for awards is the problematic 2022 award of $14 million to short seller Carson Block. The subsequent lawsuit by a fellow claimant who demanded half stated that he was in a research partnership with Block that led to the award. The SEC paid Block even though his submission didn’t meet formal requirements. SEC staff recommended denial, leading to criticism about the inconsistent application of rules.

Two Significant Changes at the SEC Whistleblower Office

The SEC’s core functions remain unchanged. However, there is an increased emphasis on compliance with submission requirements for whistleblowers.

The SEC’s FY2026 budget request included funding of $2.15 billion and a reduction in force from 4,550 employees to 4,100.

In April, the SEC announced it was restructuring the Division of Enforcement to improve efficiency and allocation of resources. Instead of ten regions, the agency will have just three regional deputy directors for the West, Southeast, and Northeast areas, overseeing all enforcement units.

Whistleblower awards are paid from the Investor Protection Fund, which is separate from annual appropriations. Budget reductions do not impact SEC whistleblower awards.

What Do You Need For A Successful Claim?

These suggestions can contribute to a successful outcome:

• Ensure that your submission is flawless: file any tips, complaints, and referrals correctly.
• Ensure that timelines are followed and that the submissions are following the SEC’s strict eligibility requirements.
• Emphasize harm to investors, the SEC’s priority in any case
• Include vital documentation and evidence, such as internal documents, contracts, emails, and any available financial records.
• Be patient. Even the strongest claims can take years before an award is made.
• Cooperating with and assisting the SEC can strengthen a claim and add value.

Whistleblowers who work with legal counsel who have a better understanding of the SEC’s criteria can increase the chances of a successful submission.

The Best SEC Whistleblower Attorneys Are Experienced And Qualified

Whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced SEC counsel may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.

Silver Law Group and the Law Firm of David R. Chase work together as experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.

Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.

Due to confidentiality requirements, the identities of the whistleblowers and the companies involved are redacted in the final orders. Therefore, it is not known whether one or more of the orders are related to each other, or if the orders involve a single company, two companies, or three different companies. It is noted that all the whistleblowers involved provided original information voluntarily, which ultimately led to the success of each enforcement action.

• In the first order, two joint whistleblowers were awarded $5.4 million, and each will receive 50%, or $2.7 million. Their information led the SEC staff to open an investigation into the company. They provided important documentation that began and continued the investigation through its completion. A third claimant in this case was denied an award and did not file a request for reconsideration.
• In the second order, a single whistleblower received a bounty of $1.3 million after providing SEC staff with original information and assistance before and throughout the investigation that led to a successful enforcement action.
• In the third order, two whistleblowers were awarded over $400,000 for providing their original information to the SEC Staff. However, the individuals delayed reporting this information. One waited 20 months, and the other 23 months, something the SEC noted as “unreasonable.” The Claims Review Staff (CRS) decided to waive the TCR filing requirements and their failure to comply with Exchange Act Rule 21F-9(b), awarding the pair the appropriate bounty.

All three orders were issued by the SEC on July 16, 2025, and published with appropriate redactions.

The SEC’s Whistleblower program awards individuals who voluntarily submit credible information on misconduct and wrongdoing in the market. Any payment bounty is taken from the monetary sanctions from the companies involved, never from recovered investor funds. Whistleblower identities are kept confidential. Individuals can submit information anonymously if they are represented by legal counsel.

Retaining Experienced SEC Whistleblower Attorneys

Whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring an experienced SEC counsel may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.

Silver Law Group and the Law Firm of David R. Chase jointly have experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.

Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.

The unnamed individual first submitted their information in a Form WB-APP and provided significant assistance to the CFTC staff. This included key information in the case and interpretation of it for staff members, and all the information the staff requested. Their actions saved CFTC staff significant resources in the investigation.

The whistleblower offered considerable assistance throughout the investigation, and “precisely and accurately described the firm’s misconduct.”  Additionally, the information “strongly supported the charge in the Covered action.”

Reduction Of Whistleblower Award

Even though the whistleblower received a substantial sum for their assistance, the Claims Review Staff (CRS) listed the reasons why they reduced the original award amount:

• The whistleblower was instrumental in implementing the actions that led to the misconduct
• The whistleblower participated in the misconduct, “acting with scienter,” or in full knowledge that it was misconduct
• The whistleblower waited four years before submitting their information to the Commission

The CRS also determined that although the whistleblower was involved in the wrongdoing, the individual was not a recidivist (repeat offender), did not benefit from the activity, nor interfered with CFTC’s investigation. Ultimately, the CRS awarded this whistleblower a percentage of the monetary sanctions collected from the company with these factors in mind. Any whistleblower award is made at the Commission’s discretion after examining all the facts in each individual case.

Retaining Experienced CFTC Whistleblower Attorneys

Whistleblowers help everyone by notifying the CFTC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced counsel may greatly increase the probability that an investigation based on your information will be initiated. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.

Silver Law Group and the Law Firm of David R. Chase jointly have experienced CFTC and SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.

Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive a bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.