SEC & CFTC whistle blowing
The New 2010 Dodd-Frank Banking Reform Act Whistleblower Provision Title IX provides for new mandatory bounties to be paid to whistle-blowers ranging from 10% – 30% of whatever the Securities and Exchange Commission (SEC) recovers above one million dollars, in any action it takes as a result of “original information” provided by the whistle blower. The Act specifically allows for anonymous reporting through an attorney and provides broad protections for the whistle blower(s), both for employees of the subject firm or person, as well as non-employees, so as to prevent retaliation. The new statute will no doubt make many people rich and also likely place a stop gap to many improper activities which normally would not see the light of day. A recent example of an SEC action involving Goldman Sachs a whistle-blower under the new statute would have earned from $55,000,000 to $165,000,000 based on the $550,000,000 fine the SEC agreed to with Goldman Sachs. Another example was recently when Dell Computer was fined $100,000,000 by the SEC due to accounting irregularities, which would have resulted in a 10-to- 30-million-dollar bounty for a whistle blower if one had been involved.
Anyone with original information is eligible, as long as they are not a regulatory employee or employee of a prosecutorial body responsible for investigating and reporting such information and/or not part of the Audit Committee of a Board of Directors. The law allows for recovery of anyone else with original information, whether they are employees of the subject firm or person, a former employee, officer, business partner, vendor, banker, financial advisor, accountant, or even a neighbor, spouse, ex-spouse and even private individuals who believe they have uncovered original information of violations of securities statutes or financial frauds. However, unlike other law firms, so as to maintain its known credibility with regulators the Meissner firm carefully screens all matters and thus does not accept any and all claims that it is contacted on.
Although the law was passed this past July 2010, the information being provided can originate from before such date and the whistleblower would still be eligible for the bounty if the SEC utilizes the information and it is original information. All of the claims filed to date by the Meissner firm have origins from long before the statute was passed.
According to the law the specific percentage to be provided will be dependent upon the amount of assistance the SEC deems that the whistle blower provided.
The law specifically provides that the whistle-blower may remain anonymous as long as they interact with the SEC through a licensed attorney, until the time comes when a bounty is paid to the whistleblower. The law also provides for a cause of action in Federal Court for any retaliation by employers as a result of filing a complaint, including double back pay, reinstatement with same seniority, attorney fees and costs. Although any attorney can file on your behalf, the experience, reputation and presentation by that attorney will no doubt play a large role in whether the SEC pursues any claim and the extent of assistance provided will determine the percentage recovery.
The firm’s accepts whistleblower matters, pursuant to the new statute, based on a contingency fee basis. The exact percentage depends on the complexity of the matter and the expected time that will be needed to assist with the pursuit of the claim. As a result the client pays No legal fees unless the client whistle-blower recovers from the SEC. Although SEC investigations are generally long-term, we are involved during the entire process, so as to assist you in properly drafting and submitting a claim so that it may receive the SEC attention it deserves, as well as to then assist the SEC in pursuing the claim where needed. Our history of regulatory and prosecutorial experience, including the NY Attorney General’s Investor Protection and Financial Crimes Units as well as having been a long-term trial prosecutor at the Manhattan District Attorney’s Office, is invaluable for this purpose. Any law firm can file a claim; however, the difference is the experience in knowing what is needed to present an attractive complaint to insure a positive outcome, along with having the contacts and known reputation the SEC can rely on.
Preliminary version of the SECSnitch.com Commercial now appearing in Movie Theatres throughout New York along with the New Movie “Wall Street – Money Never Sleeps”
To see the final version of the ad as it will appear in theatres in the tri-state area click here
Why should you have experienced counsel assist you even if you are not anonymous?
Experienced counsel is critical to both protect you and to ensure that your matter is provided the attention it deserves by the SEC. The Meissner Law firm has over two decades of securities, prosecutorial and regulatory experience and has taken the lead in filing whistle blower claims pursuant to the new law. The firm benefits from the years of litigation experience that Mr. Meissner has accrued during his tenure in the NYS Attorney General’s Office Investor Protection and Financial Crimes Units under former Attorney General Eliot Spitzer and his predecessor, as well as the Manhattan District Attorney’s Office Trial Division under Hon. Robert Morgenthau and private practice.. Meissner firm uses these refined skills to help achieve the desired results for all clients. The firm coordinates all pressure points, so as to obtain the best results for its clients in seeking compensation for their legitimate claims and defenses. As in the case of a Whistleblower claim which led to a 2006 New York State Attorney General investigation as reported in the Wall Street Journal where the firm represented a senior employee of UBS , in a whistle blower claim.
Mr. Meissner at a press conference while with Attorney General’s Office
As recently reported by Dow Jones Newswire, Forbes.com, Fortune Magazine and the New York Post, The Meissner firm is known to be the first firm to have filed several Whistleblower claims in just the few weeks since the law has been passed. Stuart D. Meissner Esq. the Managing Member of the firm is an experienced counsel who has previously successfully represented numerous senior employees in the securities industry in claims involving their employers, including whistleblower claims under existing statutes, as well as having represented numerous investors in FINRA arbitrations against major Wall Street investment banks. In just the first two weeks after the new law was passed the Meissner firm filed four significant whistle blower claims with the SEC, of which, one has been the subject of an investigation by the United States Attorney’s Office and the FBI, and another is the subject of a FINRA Enforcement investigation which body refers matters to the SEC. The Meissner firm’s credibility with regulators and known screening process for all matters it accepts assists in providing the credibility and the assistance needed for regulatory agencies to move ahead with investigations, so that recoveries may be had.
More on the Meissner Law Firm and the New Law:
esides being one of the first law firm’s to publish articles on the new law (see Forbes.com) and filing the first complaints under the new law, the Meissner firm has been front and center in cooperating and assisting the SEC in their drafting of rules needed to assist in the implementation of the new law. Weeks ago the SEC published Mr. Meissner’s August 17, 2010 comments on its own web site. Recently Mr. Meissner has been invited to meet with the Senior Advisor to SEC Chairman Mary Schapiro, Stephen L. Cohen and SEC staff on September 23, 2010 in the SEC’s Washington DC Offices, so as to further assist in the rule making process, for the new whistle-blower provisions of the Dodd-Frank Banking Reform Law.
New Memo on the SEC web site By Stephen Cohen Senior Advisor to the Chairman Reflecting Meissner Meeting with him and the SEC staff on Sept 28, 2010 discussing the implementation of the Dodd-Frank Bill. Agenda of meeting Sept 28, 2010 Click to view
Meissner Personal March 2011 Meetings with SEC Commissioners in Washington DC Regarding the Proposed SEC Rules
Meissner February 2011 Meeting with SEC Staff Regarding the Proposed SEC Whistleblower Rules and Meissner Commentary on the proposals:
News & Articles
CNBC – Details from inside Galleon
Gupta charged with providing Rajaratnam with confidential info.
Fox Business News 9/23/2010
SEC Looking for Snitches
Attorney Stuart Meissner breaks down his idea to stop financial-regulation fraud
Insider Trading Bust at Wall Street
Wall Street insider traiding probe against 14