How to File an SEC Suspicious Activity Report
The U.S. Securities and Exchange Commission (SEC) is an independent federal agency that was established to oversee the financial markets and firms to ensure investors are treated fairly and honestly. When misrepresentation, fraud, or other questionable tactics by brokerages or banks are observed, witnesses may contact the SEC to file a suspicious activity report to trigger an investigation into the matter.
The SEC receives suspicious activity reports through the Office of the Whistleblower. Whistleblowers are witnesses to the possible violations observed during the course of business within financial organizations. While they may not have been personally impacted by the violation, high monetary rewards encourage whistleblowers to notify the SEC anonymously about possible illegal transactions.
A more efficient way to file a suspicious activity report to the SEC is through DoNotPay's quick and easy online template. After answering a few questions, DoNotPay can send the report directly to the SEC on your behalf without any delays.
How Much Time Do You Have to File an SEC Suspicious Activity Report?
The SEC 's enforcement actions against a suspicious activity complaint have a five-year statute of limitation from the time of the occurrence of the violation. However, if the violation involves intent or knowledge of wrongdoing, this statute is increased to 10 years.
What Suspicious Activities Can Be Filed With the SEC?
Many types of complaints from investors, brokers, brokerage firms, investment advisors, transfer agents, and other market participants are forwarded to the SEC. However, the SEC also encourages the public as whistleblowers to submit any tips, complaints, and referrals (TCRs). These violations include the following:
- Fraudulent investments such as Ponzi and pyramid schemes and high-yield investment programs.
- Theft or misappropriation of funds or securities.
- Price or volume manipulation of security.
- Insider trading.
- False or misleading statements about a company, including false SEC reports and financial statements.
- Bribery or improper payments to foreign officials.
- Fraudulent conduct associated with municipal securities transactions or public pension plans.
How to File an SEC Suspicious Activity Report By Yourself
Filing an SEC suspicious activity report requires you to supply critical information and detailed descriptions of the suspected violation. The SEC 's online TCR form system is used to file a suspicious activity report. This can be a lengthy, time-consuming process since the following information must be included:
- Your full contact information with mail and email addresses, and phone numbers. However, you can choose to submit the report anonymously. Note that if you choose to file the report anonymously and want to be eligible for a whistleblower award, you must be represented by an attorney.
- Full contact information of the individual or company the complaint is about, including full names, mail and email addresses, and phone numbers.
- A detailed description of the events or circumstances resulting in the suspected violation including the parties involved as well as how, why, and where the questionable action occurred.
- All relevant documentation of the suspected violation.
Filing an SEC Suspicious Activity Report With DoNotPay
If you want to file an SEC suspicious activity report but don't know where to start, DoNotPay has you covered in three easy steps:
- Search SEC Complaint on DoNotPay.
- Answer basic questions about your broker and complaint (you can also use your automatically generated complaint template).
- DoNotPay will automatically run a bot to work on your behalf and securely fill out your SEC complaint form.
Why Use DoNotPay to File SEC Suspicious Activity Reports?
DoNotPay's innovative platform allows you to file an official complaint to the SEC quickly and easily. There are no lengthy online forms to complete since our automatically generated template does most of the work for you. You can rest assured that the information will be forwarded without delay to the SEC for review.
|Will my application remain confidential?||Your report is treated as confidential and nonpublic for all tips, complaints, and referrals. The SEC will not disclose your information to any third party unless authorized by statutes or laws.|
|Will the SEC notify me of their findings?||Due to the provisions of the Freedom of Information Act, the SEC is unable to disclose the progress of the investigation unless it is part of a public record in SEC proceedings or in the courts.|
|How much will I be compensated for my report?||If there is wrongdoing found based on your report, you are eligible to receive 10% to 30% of the collected sanctions that are imposed upon the violators. However, this amount may vary and is up to the agency's discretion.|
|What if my employer threatens to fire me for filing the report?||The law states that employers cannot discriminate against whistleblowers who provide suspicious activity reports to the SEC. The whistleblower is protected against retaliation after the report is filed in writing to the SEC. These protections are in place regardless of the outcome of the investigation.|
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