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.

Because the whistleblowers presented themselves as a team, and were all represented by the same legal counsel, the SEC decided to treat the joint claimants as one whistleblower for this case. The information was useful and of interest to the SEC, and the investigation led to a successful covered action that included financial sanctions. The whistleblowers were awarded a percentage of the collected sanctions from the action.

Joint Whistleblowers

Two or more individuals can join forces to submit information to the SEC instead of separately. The Securities Exchange Act of 1934’s Section 21F(a)(6) defines “whistleblower” to mean anyone who alone or jointly with others that offers information to the SEC that describes possible violations of US securities laws.

Joint whistleblowers have the same protection as individual whistleblowers, offering the opportunity to strengthen the information they submit. They are offered the same legal protections as an individual whistleblower, including protections from retaliation. While the percentage of sanction is the same as for individual whistleblowers, 10% to 30% of the collected financial sanctions, the total amount will be divided among the whistleblowers.

If two or more individuals decide to submit their information together, both will need to file a joint Form WB-APP within 90 days of the Notice of Covered Action to claim an award. Having the same legal counsel will help ensure that the same information is being shared. If you submit this information separately, one party may be awarded while the other may not, depending on who submitted first.

Should you and another party decide to submit information to the SEC, speak with an attorney who understands the SEC’s whistleblower program before submitting any information. They can advise you on the best course of action for your situation.

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 call us 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.

Ponzi schemes are the most popular ways fraudsters separate people from their money. Promises of “no risk, high/guaranteed returns” are just some of the hallmarks of the Ponzi scheme since its invention by Charles Ponzi in the 1920s. Other hallmarks include a missing business plan, vague explanations for how it operates, and lack of accountability.

Ponzi Schemes Always End

Although operators of the Ponzi scheme have explanations for everything, cracks appear in the façade over time. At first, initial investors may receive “dividends” from the incoming new investor funds. Later, investors receive excuses, or nothing at all. Many receive “account statements” that are nothing more than falsified documents to look like their investments are doing well.

To continue, the Ponzi scheme must regularly obtain new money from new investors to pay the previous investors their “dividends” and keep up the illusion of profitability. Eventually, the new money stops, investors begin withdrawing their funds, and the scheme disintegrates.

Reporting irregularities and “red flags” to the SEC is vital to stopping the Ponzi scheme. The SEC reviews and investigates irregularities for misconduct and fraud but doesn’t always find them before investor funds go missing. Whistleblowers who alert the SEC to Ponzi schemes and other securities frauds help accelerate the process and stop fraudsters from continuing to harm people.

Why Ponzi Scheme Whistleblowing Is Important 

The SEC works to ensure that the US securities market is run fairly and is safe for all investors. Ponzi schemes and other frauds take advantage of investors interested in participating.

Whistleblowers are individuals with critical, material inside information on Ponzi schemes. Whether it’s a small, locally run scheme that involves affinity groups (churches, alumni groups, ethnic group associations, etc.) or a global operation like Charles Ponzi himself, the Stanford International Bank, or the notorious Bernie Madoff, chances are there is someone who knows enough to and can put a stop to the fraud.

Ponzi schemes can be difficult to detect and uncover. Sometimes the SEC doesn’t discover fraud until it’s too late and investors have lost everything. Whistleblowers can alert the SEC earlier by providing inside information that may not be readily available to regulators. By submitting this information to the SEC and other regulators, they can help stop the fraud much earlier than waiting until the scheme collapses.

Retail investors are usually the ones most harmed most by Ponzi schemes. So it’s important that the SEC quickly acts to prevent asset depletion. Whistleblowers can significantly reduce the impact of Ponzi schemes on investors.

You can read more about how the SEC investigates cases in the SEC’s enforcement manual.

SEC Whistleblower Program Overview

To encourage and facilitate whistleblower activity, the SEC’s Whistleblower Program offers individuals with this information the opportunity to come forward, anonymously if they wish, to report what they know. They can submit their information through the SEC’s website, by fax, or by mail, without fear of reprisal if they are not taking part.

Employees, contract workers, investors, vendors, industry insiders, and vendors are just some people who can submit information as whistleblowers. Even members of the public with the knowledge and information to recognize a Ponzi scheme can submit information to the SEC if they believe they’ve uncovered a Ponzi scheme in the making or operating.

Becoming a whistleblower can also include a monetary award if the information leads to a successful enforcement operation. In some cases, more than one regulatory agency may be involved, such as law enforcement, leading to additional awards.

Ponzi Schemes Whistleblowing: Reporting A Ponzi To The SEC

The SEC has a system for reporting tips and information on Ponzi schemes and other frauds.

A successful whistleblower claim causes the SEC to:

• Open an investigation

• Pursue a new line of inquiry in an existing investigation

• Re-open a closed investigation

If your information offers substantial contribution or assistance to SEC staff about the eventual enforcement action, you may be eligible to receive a monetary award.

Timing is everything. The SEC has limited resources to begin investigating. They are interested in seeing original, credible, and timely information that piques their interest in beginning an investigation or contributes significantly to one. You must also be the first individual to submit this information or add new information to what they already have, such as identifying key players in the Ponzi scheme.

Benefits Of Whistleblowing

For successful enforcement actions that bring in $1M in fines and other financial sanctions, whistleblowers may be awarded from 10% to 30% of that amount. In real numbers, that’s $100,000 to $300,000 for the whistleblower. This money is not taken from recovered investor funds, but from a Congressionally authorized fund collected from the financial sanctions imposed on the parties involved. Any investor funds recovered are returned to the investors, and not used for whistleblower bounties.

Financial incentives aren’t the only reason to step up and become a Ponzi scheme whistleblower. By helping the SEC uncover and stop Ponzi schemes, you can:

• Help protect investor interests and prevent additional investor harm by stopping the scheme’s operations, potentially saving investors from losing their life savings

• Protect the integrity of the financial markets. Whistleblowers help maintain trust and fairness in the investment environment when they report fraud.

• Assist law enforcement in prosecuting those involved in the operations of Ponzi schemes.

As more whistleblowers come forward, the opportunities to report and stop Ponzi schemes and other frauds increase.

Anonymous Reporting

But what if reporting the Ponzi scheme would cause you to lose your job? What if your whistleblowing activities impacted your career and reputation, making it difficult to find another job? Or worse, caused problems for your family?

You can report your information anonymously if you are represented by a securities attorney. The SEC’s process includes confidentiality throughout the process and treats all information as confidential.

An attorney will draft a TCR form with your information and submit it, along with the information and the required attorney certification. The attorney works as an intermediary on your behalf to handle all negotiations and protect your rights and your confidentiality. The SEC will assign a unique TCR number to your submission and communicate with your attorney through the entire process.

If after submitting a request for an award the SEC does select you, disclosure of your identity will become necessary. Fortunately, your attorney will also handle this part of the process and work to keep your identifying information confidential.

SEC Whistleblower Protection

Even if you choose not to submit anonymously, there are other legal protections for whistleblowers:

• Retaliation. The Dodd-Frank Act prohibits employers from retaliating against whistleblowers. This includes protection from being discharged, demoted, suspended, harassed, or discriminated against for reporting possible securities law violations both internally and to the SEC.

• Prohibition of reporting. SEC Rule 21F-17(a) prohibits any person from taking action to impede an individual from communicating directly with the SEC about possible securities law violations. This includes clauses in employment contracts, discharge papers, exit paperwork, and other employment-related documents.

• The right to sue. Should your employer take retaliatory action against you after reporting a Ponzi scheme or other misconduct, you can sue in federal court to recover lost wages with interest, reinstatement, and lawsuit costs including attorney fees. This is in addition to a possible monetary award from the SEC or other agencies.

In addition to anonymous submissions and confidentiality, the Dodd-Frank Act includes these provisions to encourage whistleblowers to notify the SEC about Ponzi schemes and other violations of securities laws with safeguards from possible negative consequences.

Frequently Asked Questions (FAQ)

• Do I need to be an insider to report a Ponzi scheme? While many whistleblowers are insiders, it’s not a requirement. You can also provide an original analysis of publicly available information that leads to a successful enforcement action.

• What kind of information should I provide when reporting a Ponzi scheme? You should provide specific, credible, and timely information or analysis. Examples include identifying individuals involved, providing examples of fraudulent transactions, or pointing to non-public materials evidencing the fraud.

• What does it mean to provide “original information?”

• Can victims of Ponzi schemes also be whistleblowers? Yes, victims of Ponzi schemes can submit whistleblower tips to the SEC.

If you have information and are ready to talk to the SEC, talk to our SEC whistleblower attorneys first. We’ll discuss your case and help you decide how to proceed.

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 have formed a strategic alliance of 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 United States Securities & Exchange Commission (SEC) established its Office of the Whistleblower in 2011. Anyone with original information on a Ponzi scheme or other fraud can report this information to the SEC and alert the agency to the misconduct. SEC whistleblowers may be eligible to receive a monetary award following a successful enforcement action. 

A whistleblower can be anyone who has information on a Ponzi scheme or other fraudulent activity that results in financial losses. Whether you’ve invested in a Ponzi scheme, know someone who has, are a broker or other industry insider, or someone who recognizes the signs of a Ponzi scheme, you may be able to become a SEC Whistleblower. However, simply reporting that you believe someone is operating a ponzi scheme will not be enough. A whistleblower must present original new information to the SEC in a way that is compelling and leads to the investigation and prosecution of misconduct by the SEC.

Working with Ponzi scheme whistleblower attorneys should be first on your list before submitting your information to the SEC. If you want to report this information anonymously, you must be represented by legal counsel and experienced counsel can present the information in a manner most consistent with SEC best practices.

Whistleblowers are protected by law, and the SEC keeps their identities confidential. Our whistleblower attorneys work with the SEC on your behalf to protect your rights and confidentiality. Even if you worked for a company that is engaging in misconduct, based upon your role in the company, the information you report to the SEC and the timing can all impact an award.

These monetary awards are not automatically given to whistleblowers after the enforcement action. Because you must apply for an award after the enforcement action is published, our whistleblower attorneys can also assist you in applying for this award.

Investors In Ponzi Schemes – SEC Whistleblower Claims 

If you’re an investor who has fallen victim to fraud, partnering with a Ponzi scheme whistleblower attorney can be a powerful step toward justice and potential financial recovery. Our specialized lawyers possess in-depth knowledge of complex securities laws and regulations, including the SEC Whistleblower Program.

By becoming a whistleblower, you can potentially turn your unfortunate investment experience into an opportunity for both personal recovery and broader market integrity for other investors. By working with our whistleblower attorneys, you can benefit from expert guidance in navigating the complex reporting process. We work to ensure your claims are presented effectively to the SEC and other regulatory authorities.

Our attorneys can also help maximize the potential for monetary awards, which can be substantial. You may receive a monetary award of between 10% and 30% from the fines and sanctions recovered by the government, in addition to any of your investor funds that might be recovered.

Our attorneys are dedicated to securities and investment fraud matters. Whether your case involves an SEC whistleblower claim, class action against an issuer or a FINRA arbitration against a financial advisor. Our team of lawyers take a holistic approach to analyzing the situation and helping you determine the best course of action for recovery.

Brokers and Other Financial Industry Insiders 

Anyone in the securities industry is required to uphold certain standards for their clients. Brokers, investment advisors, and others in the industry must act in a client’s best interests. But who’s looking out for your best interests, especially when you learn about a Ponzi scheme?

Our Ponzi scheme whistleblower attorneys can also provide protection against retaliation, safeguarding your career and reputation while you take a stand against financial misconduct. We protect your rights and your interests during interactions with the SEC. Our experience in building compelling cases and liaising with government agencies can significantly increase the chances of a successful outcome.

Some of the most successful SEC whistleblowers are company insiders who had the courage to speak out and report misconduct even after getting ignored by their own employers. We frequently work with company insiders who prefer to remain anonymous but want to see ongoing frauds or Ponzi schemes stopped in their tracks.  Our lawyers work with you to protect your identity while maximizing any potential reward.

Award Eligibility

Whistleblowers who notify the SEC of an ongoing Ponzi scheme first are the ones who usually receive these awards. In the case of later submissions, the awards may be reduced, depending on how much more original information and assistance someone gives, or how long someone waited to submit their information.

Receiving an award takes more than just submitting your information to the SEC. To receive an award once an enforcement action is completed, you must also apply for it within 90 days of the date the Notice of Covered Action is published to be eligible.

You must provide the SEC with original information that has not been previously disclosed to them. Information that they may not have found in the normal course of the investigation and saves the SEC time and resources is also helpful towards a successful enforcement action.

Whistleblowers who meet any eligibility criteria for enforcement actions that yield $1 million in administrative fines and other fees may be awarded a monetary award for their assistance. The awards are between 10% and 30% of the intake, depending on the circumstances. Investor funds are not used for these awards. Any recovered investor funds are returned to the defrauded investors, whenever possible.

At this point, an anonymous whistleblower must disclose their identity to the SEC. Our whistleblower attorneys will work on your behalf to ensure that your identity is only disclosed for award purposes and no other.

Why You Need A Ponzi Scheme SEC Whistleblower Attorney

A whistleblower attorney can help a potential whistleblower in many significant ways:

Knowledge of the SEC’s Whistleblower Program: our attorneys possess in-depth knowledge of the SEC Whistleblower Program, including its rules, procedures, and award determination process.

Anonymity protection: Our whistleblower attorneys help maintain a client’s anonymity throughout the reporting process.

Submission Preparation: Our whistleblower attorneys are skilled in preparing compelling tip, complaint, or referral (TCR) submissions to the SEC, increasing the chances of the SEC pursuing the case.

Award maximization: We work to maximize potential monetary awards for our clients.

Retaliation protection: We help to provide safeguards against potential retaliation, helping protect the whistleblower’s career and reputation.

Contingency fee structure: Our whistleblower attorneys offer their services on a contingency fee basis, meaning they are only paid if the case is successful.

Because we focus on these specific attributes of whistleblower representation, we can offer tailored expertise that goes beyond the scope of a regular attorney’s practice.

Retaining Experienced SEC Whistleblower Attorneys

SEC whistleblowers help everyone by notifying the government of conduct that harms the investing public, while also earning a financial award for themselves. Experienced SEC counsel representing you 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.

Silver Law Group and the Law Firm of David R. Chase have formed a strategic alliance and jointly have experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team. Our SEC whistleblower attorneys can help you if you have information regarding investment fraud or other violations of federal securities laws.

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.

With the new administration, changes come to nearly every part of government, and the SEC is no exception. President Trump has nominated former SEC commissioner Paul Atkins to replace current SEC chair Gary Gensler. No hearing has yet been scheduled for Atkins, but he is expected to be confirmed.

Atkins’ Focus: Mom-And-Pop Investors

Retail investors are the most vulnerable and most frequently defrauded investors. While the Atkins SEC will continue to seek out most types of fraud, Mr. Silver and Mr. Chase believe his focus will be on these investors who are so often subject to the worst kinds of frauds: Ponzi schemes, abuses by brokers and dealers, market manipulation, and others. They also believe that there will be a flood of cases of so-called “alternative” investments that are difficult to value and resell as well as Regulation D private placements that involve excessive commissions and misappropriation of investor funds.

Scott and David also believe that there will be major changes to cryptocurrency in terms of both rulemaking and enforcement. In addition to new rules and regulations, they predict widespread changes to enforcement, which may include handing control of cryptocurrency enforcement to the U.S. Commodity Futures Trading Commission (CFTC).

Changes To Penalties And Fines

One possibility is the reduction of fines against large companies when specific individuals are responsible for misconduct. This would mean that companies and shareholders who were not responsible for misconduct and did not benefit from it would not be unjustly fined and punished. This is not to say that civil penalties will be eliminated but used more meticulously when examining the facts and determining the proper penalties.

How These Affect The SEC Whistleblower Program

Mr. Silver and Mr. Chase don’t believe there will be any fundamental changes to the SEC whistleblower program. The basis for paying awards will still be based on the submission of original and quality information from individuals. However, with Atkins’ pro-business vision, the dollar amount of awards paid to whistleblowers may be slightly less than they have been.

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 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.

Ponzi schemes are infamous for promising high returns in a short time. Like most financial crimes, the scheme’s operators take investor funds and leave the investor with little to nothing. From the original scheme from Charles Ponzi to Bernie Madoff’s massive fraud, any Ponzi scheme uses the same basic framework: 

• Solicit and take money from investors

• Use cash for whatever they like

• Solicit new money from new investors

• Use new funds to pay previous investors

The process continues until the principals can no longer obtain additional new money, or many investors decide to withdraw their funds. Eventually, and sometimes quickly, the scheme collapses.

Whistleblowers are vital to finding and stopping Ponzi schemes and other frauds against innocent investors. They alert the US Securities and Exchange Commission (SEC) to the activity and provide critical information that SEC staff and investigators may be unable to locate otherwise. In many cases, the SEC can stop the scheme, freeze assets, and sometimes return some or most of the investors’ monies.

Without whistleblowers, Ponzi schemes may never be uncovered or may continue until all monies and assets are exhausted before they’re discovered.

What Makes A SEC Whistleblower? 

A SEC whistleblower alerts the SEC to a Ponzi scheme or other fraudulent activity. They can be anyone who knows about and understands the company’s misconduct and can provide original and credible inside information.

Without input from whistleblowers, a Ponzi scheme may be more difficult to uncover until large numbers of investors have lost money. Whistleblowers provide key information that helps the SEC investigate, uncover, and bring enforcement actions against individuals and companies engaged in Ponzi schemes.

Operators of Ponzi schemes often employ workers who don’t understand the true nature of the “business.” At some point, they may uncover this information and may decide to become a whistleblower.

Not all whistleblowers are employees. Anyone with information on a Ponzi scheme can share it with the SEC, including:

• A defrauded investor

• An investor’s family member, trustee, or beneficiary

• Industry experts and analysts who recognize the signs of a Ponzi scheme and can show the SEC how it works

• A member of the public who understands the company, its dealings, and why they suspect a Ponzi scheme

• Anyone else who has access to information about a fraud like a Ponzi

Submitting this information timely to the SEC can start the process of stopping a Ponzi scheme or other type of fraud.

SEC’s Whistleblower Program

In 2010, the SEC established its Office of the Whistleblower to offer financial awards and enable individuals with original information to voluntarily notify the agency of misconduct. The website lets whistleblowers submit their information quickly and easily online or by other forms of submission.

Whistleblowers can stop Ponzi schemes by reporting information to the SEC’s Whistleblower program. Alerting the SEC to a Ponzi scheme or other wrongdoing allows the agency to investigate and stop the misconduct before more investors are harmed. Individuals with knowledge of a Ponzi or other scheme often have vital information that investigators may not have access to or detect for some time. Submission of this information makes it easier for SEC staff to find and investigate, and saves time and available resources.

The SEC has additional information available on its website, including a page for Frequently Asked Questions.

How Do I Report A Ponzi Scheme To The SEC? 

The SEC’s Whistleblower website has several options for submitting information. The SEC’s preferred method is using their Tips, Complaints, and Referrals form (TCR) on their website. This method gives a submission number, which can be used to update and submit additional information through the website portal. Joint whistleblowers can also submit information but each must create an individual TCR and mention the other party’s name in their submissions.

To remain anonymous, you must be represented by counsel.

Legal Protections And Financial Incentives For SEC Whistleblowers 

SEC whistleblowers can encounter risks and hardships in the quest to do the right thing. Some may face harassment, demotion, job loss, a damaged reputation, and other disincentives to prevent reporting misconduct.

Whistleblowers may be eligible for monetary awards under The Dodd-Frank Wall Street Reform and Consumer Protection Act. Cases that bring in administrative fees and fines of more than $1M may mean a financial bounty for the whistleblower. A person who provides original information that leads to a successful enforcement action may be eligible for anywhere from 10% to 30% of the monies collected.

The SEC has awarded over $2 billion in whistleblower awards since beginning the program in 2010.

Investor money recovered is returned to the investors, not used for whistleblower awards. The funds used for the awards come from financial sanctions against the company or companies involved. These funds are added to a separate fund established by Congress for the purpose of rewarding whistleblowers.

SEC whistleblowers have legal protection under Dodd-Frank. No one has the legal right to prevent you from contacting the SEC to report wrongdoing, including an employer. Dodd-Frank also includes the right to sue an employer that retaliates against any individual who acts as a whistleblower. A successful lawsuit in federal court can bring reinstatement, double back pay, attorney’s fees, litigation fees, and even expert witness costs. A whistleblower’s identity is always kept confidential throughout the investigation and afterward.

How Our Attorneys Can Help

One of the biggest reasons to work with Silver Law Group and The Law Firm of David R. Chase is to have help going through the process. Both attorneys have experience working with SEC whistleblowers who report Ponzi schemes and other wrongdoing. They can first discuss your case with you, answer all your questions, and determine the best course of action, including:

• Gather evidence to support your information and make the best presentation to persuade the SEC to investigate leading to an enforcement action.

• Submit an anonymous claim on your behalf to the SEC or CFTC

• Be an advocate throughout the process and protect you from possible retaliation

• Preparing your claim for submission, including a monetary award for your assistance

• Protect your identity and keep it confidential to the fullest legal extent possible.

Before submitting your information to the SEC, contact our whistleblower attorneys and discuss your legal options.

Retaining Experienced SEC Whistleblower Attorneys

SEC whistleblowers help everyone by notifying the government of conduct that harms the investing public, while also earning a financial award for themselves. Experienced SEC counsel representing you 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.

Silver Law Group and the Law Firm of David R. Chase have formed a strategic alliance and jointly have experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team. Our SEC whistleblower attorneys can help you if you have information regarding investment fraud or other violations of federal securities laws.

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.

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