Investment Company Act of 1940 Whistleblower Attorney

Attorneys for Reporting Investment Company Act of 1940 Violations Under the SEC Whistleblower Program

The Investment Company Act of 1940 is one of several laws administered by the U.S. Securities and Exchange Commission (SEC) that are designed to protect the domestic securities and financial markets. It applies specifically to mutual funds and other investment funds, and it establishes numerous prohibitions pertaining to investments in publicly traded companies, private companies, and other securities issuers.

It establishes other compliance obligations for investment funds and their portfolio managers as well—and it imposes steep penalties for all forms of securities fraud and financial fraud (including accounting fraud). Individuals who have information about violations of the Investment Company Act can help the SEC hold bad actors accountable, and they can do so by coming forward through the SEC’s Whistleblower Program.

Experienced Legal Representation for Securities Fraud Whistleblowers

Our law firm provides experienced legal representation for securities fraud whistleblowers who are prepared to report violations of the Investment Company Act to the SEC. While the SEC works hard to protect investors, it relies heavily on whistleblowers to expose statutory violations by public and private companies. All of our attorneys have significant experience representing whistleblowers; and, if you have questions about reporting improper securities trading practices or any other violation of the Investment Company Act or SEC rules, we can provide the insights you need to make informed and confident decisions.

Our experienced whistleblower attorneys are available to assist with disclosing violations including (but not limited to):

• False or misleading disclosures in a fund’s or issuer’s financial statements
• False or misleading disclosures regarding past or pending securities litigation
• Fraudulent unregistered securities offerings (including public and private offerings)
• Insider trading, market manipulation, Ponzi schemes, and other forms of securities fraud
• Improper conduct by clearing agencies, transfer agents, and other parties in the securities industry
• Reliance on incorrect valuations resulting in financial losses for investors
• Unauthorized trading, excessive fees, and other trading violations by investment firms, broker-dealers, and other parties

Along with violations of the Investment Company Act, we help whistleblowers report violations of the Securities Exchange Act, Commodity Exchange Act, Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Sarbanes-Oxley Act (SOX), and other federal securities laws as well. If you have (or believe you may have) information about a violation of any federal law governing the federal securities industry, we strongly encourage you to schedule a free and confidential consultation with a member of our experienced legal team today.

Serving as an Investment Fraud Whistleblower

Serving as an investment fraud whistleblower is important, and the SEC relies heavily on whistleblowers to expose when civil or criminal enforcement action may be warranted. At the same time, the SEC has established strict requirements for coming forward, and this makes it important to work with an experienced securities fraud whistleblower lawyer throughout the process.

Here is a brief introduction to the process of serving as an investment fraud whistleblower:

1. Determining if Your Information Warrants an SEC Enforcement Action

The first step is to determine if the information you have in your possession warrants an SEC enforcement action. As discussed above, the SEC accepts whistleblower complaints involving a wide range of fraudulent activities, from fiduciary duty breaches to an investment fund’s activities designed to deceive investors into making uninformed investment decisions.

2. Determining Your Eligibility to File a Whistleblower Claim with the SEC

If the information you have in your possession warrants an SEC enforcement action, the next step is to determine if you are eligible to serve as a securities fraud whistleblower. Some of the key considerations include:

• Did you obtain the information in your possession through independent knowledge or independent analysis?
• Will you be the first to come forward with the information you have in your possession?
• Is your disclosure likely to lead to the recovery of monetary sanctions of $1 million or more?

Our SEC whistleblower lawyers can use their extensive experience to assess your eligibility to come forward. If you are eligible to come forward and you decide to do so, our lawyers will then prepare and file your whistleblower complaint on your behalf.

3. Filing a Whistleblower Complaint with the SEC’s Office of the Whistleblower

Exposing investment fraud to the SEC involves filing a formal whistleblower complaint with the SEC’s Office of the Whistleblower. The Office of the Whistleblower accepts whistleblower complaints involving equity and debt securities, and its primary focus is on protecting individual investors from losses due to fraud. When preparing a whistleblower complaint to submit to the SEC, it is important to keep this focus in mind, and to provide as much information as possible about the conduct that warrants federal enforcement action.

4. Working with the SEC as it Investigates Your Whistleblower Complaint

When investigating investment funds, financial institutions, securities issuers, and other parties in response to whistleblower complaints, the SEC relies on whistleblowers to remain available during the process. Our attorneys work with the SEC directly on behalf of our clients while continuing to help our clients make informed and confident decisions every step of the way.

5. Claiming Your Whistleblower Reward if Your Complaint Leads to a Successful Enforcement Action

When eligible whistleblowers submit complaints that lead to the recovery of $1 million or more, they can become eligible to receive a reward ranging from 10% to 30% of the monetary sanctions recovered. If you become eligible to receive a whistleblower reward from the SEC, our attorneys will seek an award amount that reflects your important contributions to the SEC’s successful enforcement efforts.  

How Our Law Firm’s Experienced SEC Whistleblower Attorneys Can Help

If you are interested in blowing the whistle under the Investment Company Act of 1940, our SEC whistleblower attorneys can provide the advice and insights you need to move forward. Here are just a few of the ways our experienced attorneys can help:

• Helping You Make Informed and Confident Decisions – As discussed above, our attorneys will help you make informed and confident decisions throughout the process. This includes decisions about everything from whether to come forward to how much additional assistance to provide during the SEC’s investigation.
• Working with the SEC on Your Behalf – If you decide to come forward, we will work directly with the SEC on your behalf. Our attorneys will work alongside the SEC as it works to uncover additional evidence of the investment company’s management team’s misconduct, the fund’s unsound investment policies, or any other alleged wrongdoing you disclose.
• Protecting Your Identity and Your Legal Rights – As your legal counsel, we will also protect your identity and your legal rights throughout the process. This includes protecting your right to be free from employment-related retaliation and your right to receive a monetary reward if the SEC pursues a successful enforcement action.

We represent all securities whistleblowers on a contingency-fee basis. This means that we do not charge a retainer or hourly fees. If you receive a whistleblower reward, our legal fees will be calculated as a percentage of the amount we help you recover.

FAQs: Exposing Violations of Federal Securities Laws to the SEC

Schedule a Free and Confidential Consultation with an Investment Company Act of 1940 Whistleblower Attorney Today

To learn more about serving as an Investment Company Act of 1940 whistleblower, contact us today. Call 866-320-3959 or contact us confidentially online to schedule a free and confidential consultation as soon as possible.