SEC Whistleblower Practice

Securities fraud played an integral in the financial crisis suffered by taxpayers and investors over the last several years. In response, the Government enacted the Dodd–Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), which, among its sweeping provisions, contains an unprecedented program designed to reward whistleblowers who come forward with information that leads to a successful enforcement action by the SEC against violators of the securities laws. As a result, whistleblowers may now recover for blowing the whistle to the SEC, without first reporting internally, armed with strict confidentiality and retaliation protections.

Stone & Magnanini represents whistleblowers who report securities fraud under the SEC Whistleblower Program. Stone & Magnanini is uniquely positioned to represent such whistleblowers having extensively litigated securities actions of all kinds on both the plaintiff and defendant sides, including the representation of major corporations and high net worth individuals in proceedings in front of the SEC, as well as the representation of investors who have suffered losses as a result of violations of the securities laws. Among these matters, David Stone, Managing Partner of Stone & Magnanini, represented the Lehman Brothers whistleblowers during testimony for Congress surrounding the investigation of the collapse of Bear Stearns and Lehman Brothers.

Stone & Magnanini’s experience includes the litigation of, or representation of whistleblowers in bringing information to the SEC. Cases involving the following conduct that would likely result in a violation of the securities laws:

  • False or misleading statements about a company in public documents and SEC filings;
  • Misappropriation of funds or securities;
  • Breaches of fiduciary duty under the Investment Advisors Act;
  • Fraudulent or unregistered securities offering;
  • Ponzi or pyramid schemes
  • Improper, self-interested hedge trading

To learn more about reporting Securities Fraud or to request a free, confidential case evaluation contact Stone & Magnanini’s Securities Fraud Team.