Being a Whistleblower

Whistleblowers play a critical role in exposing misconduct and protecting the integrity of the financial markets. However, understanding the role of a whistleblower and how to navigate the reporting process is essential for those who witness wrongdoing. It’s also important for whistleblowers to take all necessary steps to protect themselves. At Malecki Law, we have assembled a dedicated team of whistleblower lawyers who have extensive experience guiding individuals through the process of reporting violations and seeking justice.

A whistleblower is an individual who reports illegal, unethical, or improper activities within an organization. Whistleblowers can come from any industry and are often employees, former employees, or insiders who have firsthand knowledge of misconduct. By exposing these activities, whistleblowers help hold wrongdoers accountable and protect the public from harm.

In the securities industry, a whistleblower is someone who reports violations of securities laws or regulations, such as fraud, insider trading, or other deceptive practices. These individuals may work for broker-dealers, investment advisory firms, or other entities regulated by the SEC or FINRA. Whistleblowers in the securities industry are essential for uncovering practices that undermine investor confidence and market stability.

Deciding whether to submit a tip depends on the nature of the misconduct and the evidence you have. The SEC handles violations of federal securities laws, such as fraud, insider trading, and Ponzi schemes. FINRA, on the other hand, oversees broker-dealers and their associated persons, addressing issues like sales practice violations and misconduct by registered representatives. If you are unsure where to report, consulting an experienced securities attorney can help you determine the appropriate avenue.

FINRA provides several ways for individuals to report misconduct:

• Online: You can submit a tip through FINRA’s website using their Regulatory Tip Submission Form.
• Phone: Call FINRA’s toll-free hotline at (866) 397-3290.
• Mail: Send detailed information to FINRA’s Office of the Whistleblower at 1735 K Street, NW, Washington, DC 20006.

FINRA’s process ensures that your concerns are reviewed promptly and thoroughly. While anonymity is an option, whistleblowers who provide their identity may be better positioned to assist in the investigation.

The SEC’s Office of the Whistleblower offers multiple options for submitting tips:

• Online: Submit information through the SEC’s Tip, Complaint, or Referral (TCR) form, which is available on their website.
• Mail: Send tips to the SEC Office of the Whistleblower, 100 F Street NE, Mail Stop 5631, Washington, DC 20549.
• Phone: Call the SEC’s Office of the Whistleblower at (202) 551-4790.

The SEC’s whistleblower program allows eligible individuals to receive monetary awards if their tips lead to successful enforcement actions resulting in the recovery of significant financial penalties.

Being proactive in preventing corruption involves creating an environment that encourages ethical behavior and accountability. Steps include:

• Promoting Transparency: Encourage clear and open communication within organizations.
• Educating Employees: Provide training on compliance and ethical standards to ensure everyone understands their responsibilities.
• Monitoring Activities: Regularly review transactions and communications to detect potential misconduct.
• Establishing Reporting Mechanisms: Create safe and anonymous channels for employees to report concerns without fear of retaliation.

Taking these proactive measures not only helps prevent corruption but also fosters a culture of trust and integrity within the organization.

If you have witnessed misconduct in the securities industry, Malecki Law is here to help. Our experienced attorneys will guide you through the process of reporting violations and protect your rights every step of the way. Contact Malecki Law at (212) 943-1233 for a consultation and take the first step toward making a difference.