Since the passing of the Sarbanes-Oxley Act in 2002, publicly traded companies have been required to provide a full report regarding their financial standing. This law is in place to protect investors, as it ensures that companies are not able to withhold information that would benefit it.
Thanks to this law, any employee, former employer or contractor with knowledge of fraud has the right to file a qui tam lawsuit. In the event that the federal government agrees that the company has committed fraud, the person has the right to receive up to 35 percent of the money received.
This may sound rare, but more than $3 billion has been recovered by the government thanks to whistleblowers.
Some of the most common types of fraudulent financial practices include:
-- Illegal investments
-- Lying about cash position
-- Inappropriate investments
-- Falsifying earnings
-- Pyramid and Ponzi schemes
It is one thing to be aware of a Securities and Exchange Commission violation. It is another thing entirely to blow the whistle on a company. There are specific steps you must take if you want to file a qui tam lawsuit.
While it can be challenging to file a qui tam lawsuit, especially if you are worried about an employer that may retaliate, the law is on your side.
If you come across an SEC violation and feel that blowing the whistle is the right thing to do, you should consider which steps to take next. Our website can provide you with guidance. Get started by reviewing our webpage entitled "Florida Lawyer For Whistleblower — SEC Violations."