SOX Whistleblower Reward Attorney

The Sarbanes-Oxley Act (SOX) protects investors from corporate accounting fraud by imposing certain financial reporting and auditing requirements. The law was passed in response to major scandals that erupted at publicly traded companies in the early 2000s. It was intended to restore investor confidence in the integrity of corporate financial statements and, more broadly, the securities markets. The Dodd-Frank Act further enhances whistleblower protections and provides incentives for reporting violations in the financial sector.

The Securities and Exchange Commission (SEC) is the law enforcement agency primarily responsible for enforcing the provisions of SOX and the Securities Exchange Act. The Sarbanes-Oxley Act’s provisions are incorporated into the Securities and Exchange Act, reinforcing the importance of understanding these laws for whistleblowers seeking rewards. However, it cannot do so without the assistance of whistleblowers. These insiders provide valuable information to government investigators and lawyers, which helps put a stop to corporate accounting fraud. Becoming a whistleblower also makes one eligible to claim a potentially significant reward. Find out why so many whistleblowers have trusted Oberheiden P.C. to handle their cases.

Understanding the Sarbanes-Oxley Act

The Sarbanes-Oxley Act (SOX) is a pivotal federal law enacted in 2002 to protect employees of publicly traded companies from retaliation when they report corporate wrongdoing, including securities fraud and other violations of federal law. This legislation came into existence in the wake of the infamous accounting scandals at Enron and WorldCom, which shook investor confidence and highlighted the need for stricter corporate governance.

SOX mandates that publicly traded companies establish robust internal controls and procedures for accurate financial reporting. It also provides comprehensive protections for employees who report misconduct either to their employers or directly to the Securities and Exchange Commission (SEC). By enforcing these provisions, the SEC plays a crucial role in maintaining the integrity of the financial markets and safeguarding whistleblowers who courageously step forward to expose fraud.

Information That May Support a SOX Whistleblower Reward for Publicly Traded Companies

You may have an employment or contractor position within a publicly traded company in the securities industry that gives you access to certain insider information. If this information provides evidence of a SOX violation, you should speak with an experienced SOX whistleblower rewards attorney about blowing the whistle. However, you must first know what sorts of activities break the federal or state law. These are a few common examples:

• Failure to certify financial statements: Senior corporate management is responsible for certifying the accuracy of public financial statements. This means that CEOs and CFOs, in particular, must ensure that their reports and submissions to the SEC are accurate.
• Incorrect financial statements: Preparing or releasing false, inaccurate, or misleading corporate disclosures may violate the law. Because the information in these reports can entice investors, committing errors could expose a business to liability.
• Recordkeeping violations: SOX imposes recordkeeping requirements so that auditors and regulators can constantly access the documents needed to verify corporate financial statements. A failure to maintain these records could be a major violation of the law.
• No internal controls: Publicly traded companies must establish internal controls to prevent accounting irregularities and the release of false information. The failure to have these mechanisms in place is a significant red flag that could lead to other violations.
• Inappropriate accounting: Companies must use proper accounting standards and practices to ensure the accuracy and consistency of their financial reports. Although improper accounting is itself a legal problem, it is often indicative of a deeper issue, such as deliberately trying to mislead investors.
• Interference with external auditing: SOX mandates external auditing designed to allow regulators and investors to access unbiased information about the finances of publicly traded companies. Interference in this process, which often comes from executive leadership, frustrates its objectives and may be done to cover up financial crimes.

Put our highly experienced team on your side

Dr. Nick Oberheiden

Founder

Attorney-at-Law

Lynette S. Byrd

Former DOJ Trial Attorney

Partner

Brian J. Kuester

Former U.S. Attorney

Hon. Kevin McCarthy

55th Speaker, U.S. House of Representatives (ret.)

Government Consultant

Mike Pompeo

Of Counsel

Former U.S. Secretary of State

John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara

Federal Appeals Attorney

Nicholas B. Johnson

Former Prosecutor

Roger Bach

Former Special Agent (DOJ)

Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen

Former Supervisory Special Agent (FBI)

Becoming a Sarbanes-Oxley Act Whistleblower

The lawful act of an individual with an objectively reasonable belief that the evidence indicates actual or potential corporate fraud may become a SOX whistleblower. These individuals may be:

• Employees, officers, or agents of publicly traded companies
• Employees of subsidiaries and affiliates of publicly traded companies
• Employees of contractors and subcontractors that work with publicly traded companies
• Employees of Nationally Recognized Statistical Ratings Organizations (NRSROs)

A whistleblower should have original information regarding violations of the law. “Original” means that the SEC or other government agencies do not already know about it, and it is not public. However, the information does not have to spur a brand new investigation, although it may. Rather, if the evidence supports an existing investigation, it could qualify the whistleblower for a reward.

The whistleblower should be the first one to step forward with the evidence. In other words, the law rewards those who blow the whistle first. While the evidence does not have to prove that a SOX violation occurred definitively, it should be more than a mere hunch.

If your information leads to the successful recovery of legal penalties or other funds from the wrongful party, you could be able to claim 10% to 30% of the total amount as a reward.

Protection Against Retaliation

Individuals are protected against employment harassment, discrimination, and retaliation from their status as Sarbanes-Oxley whistleblower. Importantly, this protection applies even if the whistleblower is ultimately incorrect about the information and the company did no wrong. The SEC’s mission of enforcing SOX and protecting investors and the public is so important that strong anti-retaliation provisions are in place to protect those who step forward. A significant advantage for employees pursuing claims against employers, particularly in cases of retaliation for whistleblowing, is the right to a jury trial in federal court.

Workplace retaliation takes many forms, such as job termination, demotion or denial of a promotion, and creating a hostile work environment. If you have been a victim of these and related forms of punishment, federal and securities laws entitle you to whistleblower compensation. Employees who prevail on whistleblower claims are entitled to legal protections and remedies, including reinstatement, back pay, and emotional distress damages. We can help you explore and take advantage of your options.

Here to Assist With Your SOX Whistleblower Case

Our law firm is ready to handle all aspects of your whistleblower case in federal court from start to finish. We are experienced litigators who have represented the interests of numerous SOX whistleblowers. Our SOX whistleblower rewards attorney helps clients by providing the following services, among others:

• Reviewing the evidence in your possession to decide whether it qualifies you for a whistleblower reward
• Reporting your information to the SEC or other appropriate government agency by filing the required paperwork
• Communicating on your behalf with the SEC is an important step which will increase the likelihood of you receiving a higher reward
• Maintaining your confidentiality and anonymity
• Helping you take advantage of anti-retaliation laws
• Advocating for the highest possible reward

Contact Our SOX Whistleblower Rewards Attorney

Because of the law’s complexity and the requirements of the whistleblower program, you should speak immediately with our legal team if you have information concerning the actions listed above. If you are unsure whether your evidence points to wrongdoing, we can carefully evaluate it for you. Give Oberheiden P.C. a call today, or fill out our online contact form.