Illegal Insider Trading
Most people do not realize that insider trading can be both legal and illegal. With legal insider trading, people inside a corporation trade their company’s stocks and report the trades to the U.S. Securities and Exchange Commission, or SEC. With illegal insider trading, people use secret, nonpublic information to make securities trades.
With the Restoring America To Financial Stability Act of 2010, the U.S. government is taking a harsh stand against securities fraud and insider trading in order to help restore the economy as well as America’s faith in the stock market. Thus, the SEC encourages individuals to bring forth information that they may have regarding illegal insider trading. If this information leads to a successful court case, you can receive a portion of the amount awarded to the U.S. government. This is called qui tam law.
A qui tam attorney can help you determine if your information can help the SEC pursue illegal insider trading. However, there are some general things to watch out for when you suspect illegal insider trading. Some recent securities fraud cases brought by the SEC include:
Corporate executives and employees who used secret insider information to make trades with their company’s stock
Corporate directors and workers who traded their corporation’s securities without properly reporting the trades to the SEC
Friends, associates, and family members who traded a corporation’s stock based on sensitive information they received from someone at the company
Employees of financial institutions such as banks or brokerage firms who traded stock based on information they received through providing necessary services to a corporation
Government employees who used their positions to trade securities with nonpublic tips
Insider trading is unfair, and it can illegally lower the value of your stock as well as the securities owned by millions of other victims. If you are aware of any illegal insider trading, you should not hesitate to act as a “whistleblower” so that you can protect your rights and the rights of other law-abiding citizens.
To discuss your information and rights to protection as a whistleblower, you should only entrust your case to a reliable, experienced qui tam lawyer. Contact a respected Qui Tam attorney from Tycko & Zavareei, LLP, today to learn more about your legal options.
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