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It sounds too good to be true, it usually is. It is an investment opportunity that offers no risk, high returns, or other incredible claims and is just a can't-miss way to make more money. Unfortunately, many people get lured into an "easy money" scenario that is nothing more than a fraud.   Ponzi schemes are the most popular ways fraudsters separate people from their money. Promises of "no risk, high/guaranteed returns" are just some of the hallmarks of the Ponzi scheme since its invention by Charles Ponzi in the 1920s. Other hallmarks include a missing business plan, vague explanations for how it operates, and lack of accountability.If it sounds too good to be true, it usually is. It is an investment opportunity that offers no risk, high returns, or other incredible claims and is just a can’t-miss way to make more money. Unfortunately, many people get lured into an “easy money” scenario that is nothing more than a fraud.

Ponzi schemes are the most popular ways fraudsters separate people from their money. Promises of “no risk, high/guaranteed returns” are just some of the hallmarks of the Ponzi scheme since its invention by Charles Ponzi in the 1920s. Other hallmarks include a missing business plan, vague explanations for how it operates, and lack of accountability. Continue reading

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If you’ve become aware of a Ponzi scheme, your first instinct may be to disclose the information and stop the fraud. But how do you know who to tell? What do you do next? Who can answer your questions?   The United States Securities & Exchange Commission (SEC) established its Office of the Whistleblower in 2011. Anyone with original information on a Ponzi scheme or other fraud can report this information to the SEC and alert the agency to the misconduct. SEC whistleblowers may be eligible to receive a monetary award following a successful enforcement action.  A whistleblower can be anyone who has information on a Ponzi scheme or other fraudulent activity that results in financial losses. Whether you’ve invested in a Ponzi scheme, know someone who has, are a broker or other industry insider, or someone who recognizes the signs of a Ponzi scheme, you may be able to become a SEC Whistleblower. However, simply reporting that you believe someone is operating a ponzi scheme will not be enough.  A whistleblower must present original new information to the SEC in a way that is compelling and leads to the investigation and prosecution of misconduct by the SEC. If you’ve become aware of a Ponzi scheme, your first instinct may be to disclose the information and stop the fraud. But how do you know who to tell? What do you do next? Who can answer your questions?

The United States Securities & Exchange Commission (SEC) established its Office of the Whistleblower in 2011. Anyone with original information on a Ponzi scheme or other fraud can report this information to the SEC and alert the agency to the misconduct. SEC whistleblowers may be eligible to receive a monetary award following a successful enforcement action.  Continue reading

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SEC whistleblower attorneys Scott Silver and David Chase, recently authored an article for law.com to discuss their predictions for the SEC’s Whistleblower program during the second Trump administration. With the new administration, changes come to nearly every part of government, and the SEC is no exception. President Trump has nominated former SEC commissioner Paul Atkins to replace current SEC chair Gary Gensler. No hearing has yet been scheduled for Atkins, but he is expected to be confirmed.SEC whistleblower attorneys Scott Silver and David Chase, recently authored an article for law.com to discuss their predictions for the SEC’s Whistleblower program during the second Trump administration.

With the new administration, changes come to nearly every part of government, and the SEC is no exception. President Trump has nominated former SEC commissioner Paul Atkins to replace current SEC chair Gary Gensler. No hearing has yet been scheduled for Atkins, but he is expected to be confirmed. Continue reading

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Do you have information about a Ponzi scheme? You could be eligible for a whistleblower award from the SEC for your knowledge and information.   Ponzi schemes are infamous for promising high returns in a short time. Like most financial crimes, the scheme’s operators take investor funds and leave the investor with little to nothing. From the original scheme from Charles Ponzi to Bernie Madoff’s massive fraud, any Ponzi scheme uses the same basic framework:  Solicit and take money from investors  Use cash for whatever they like  Solicit new money from new investors   Use new funds to pay previous investors Do you have information about a Ponzi scheme? You could be eligible for a whistleblower award from the SEC for your knowledge and information.

Ponzi schemes are infamous for promising high returns in a short time. Like most financial crimes, the scheme’s operators take investor funds and leave the investor with little to nothing. From the original scheme from Charles Ponzi to Bernie Madoff’s massive fraud, any Ponzi scheme uses the same basic framework:  Continue reading

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New York-based investment advisors Two Sigma Investments LP and Two Sigma Advisers LP have settled SEC charges and repaid funds after a researcher made unauthorized changes to the firm’s investment models used to make investment decisions. Known collectively as “Two Sigma,” the firm paid $90 million in civil penalties to settle the SEC claims, then voluntarily repaid $165 million to affected funds and client accounts. The firm failed to handle vulnerabilities in its investment models and address multiple supervisory and compliance breakdowns. Separately, two employees warned the firm repeatedly about the possibility of unauthorized changes to the models, and how any changes could have severe negative impacts on the firm and the firm's customers. Unfortunately, Two Sigma did not act upon their information immediately, and an employee tampered with the investment models without authorization. Additionally, Two Sigma violated Whistleblower protection rules in exit contracts for departing employees.New York-based investment advisors Two Sigma Investments LP and Two Sigma Advisers LP have settled SEC charges and repaid funds after a researcher made unauthorized changes to the firm’s investment models used to make investment decisions. Known collectively as “Two Sigma,” the firm paid $90 million in civil penalties to settle the SEC claims, then voluntarily repaid $165 million to affected funds and client accounts. Continue reading

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The Commodities Futures Trading Commission (CFTC) has announced an award of nearly $4 million to two whistleblowers who notified the agency of a company's misconduct. Both individuals provided sufficient original information to lead to a successful enforcement action. Whistleblower #1 initially notified the CFTC of this misconduct and supplied key information. The CFTC opened its investigation based on the information submitted by Whistleblower #1. Whistleblower #2 also provided additional information which included the admission that the misconduct was ongoing and continuing. While Whistleblower #2 also provided “substantial assistance,” they also “unreasonably delayed” giving information to the CFTC. This led to a reduction of the award amount, which was not disclosed. Three additional whistleblowers were denied an award and did not seek reconsideration by the CTFC's Claims Review Staff (CRS.) Claimant #3’s information was already in the record with no original information submitted.The Commodities Futures Trading Commission (CFTC) has announced an award of nearly $4 million to two whistleblowers who notified the agency of a company’s misconduct.

Both individuals provided sufficient original information to lead to a successful enforcement action. Whistleblower #1 initially notified the CFTC of this misconduct and supplied key information. Continue reading

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The SEC recently reached a $3 million collective settlement with seven public companies charged with violating whistleblower protection Rule 21F-17(a). This rule prohibits any actions by companies that impede an individual from communicating directly with the SEC staff about a possible securities law violation they observe. The companies cited were: Acadia Healthcare Company Inc., $1.3 million k.a. Brands Holding Corp., $399,000 AppFolio, Inc., $692,000 IDEX Corp., $75,000 LSB Industries, Inc., $156,000 Smart for Life, Inc., $19,500The SEC recently reached a $3 million collective settlement with seven public companies charged with violating whistleblower protection Rule 21F-17(a). This rule prohibits any actions by companies that impede an individual from communicating directly with the SEC staff about a possible securities law violation they observe. Continue reading

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The SEC recently announced that it has awarded money to two whistleblowers for their information that led to an SEC enforcement action against a company as well as a related action against the same company by another federal agency. Both individuals voluntarily provided critical information that led to the successful enforcement actions. In the first case, Claimant #1 brought the misconduct to the SEC’s attention, but did not have anything more to offer outside of the initially supplied information. The supplied information was generalized, contained errors, and the individual didn’t fully understand the schemes. Furthermore, the individual did report the misconduct to their supervisor but did not notify the SEC for more than two years afterward. The SEC awarded this whistleblower a bounty of $4 million.The SEC recently announced that it has awarded money to two whistleblowers for their information that led to an SEC enforcement action against a company as well as a related action against the same company by another federal agency. Both individuals voluntarily provided critical information that led to the successful enforcement actions. Continue reading

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