Market manipulation violates federal securities laws enforced by the Securities and Exchange Commission (SEC), and whistleblowers who report market manipulation can receive rewards for revealing fraud against government-protected securities markets.

Market manipulation is intentional conduct designed to deceive investors by controlling or artificially affecting the market for a security.

Hagens Berman’s whistleblower client brought one of the most famous market manipulation cases to the government, which resulted in the extradition and prosecution of a market manipulator, and a maximum award for our client. 

WHAT DOES MARKET MANIPULATION LOOK LIKE?

Market manipulation can include various forms of market fraud, designed to manipulate stock prices and deceive investors. Examples can include:

  • Old-school techniques such as spreading false information to affect a stock price
  • Manipulating volume
  • Newer, more innovative “spoofing,” “layering,” and other algorithmic trading manipulation
  • Predatory techniques to create an artificial picture of demand or supply for a security

WHY DO WHISTLEBLOWERS REPORT MARKET MANIPULATION?

Because of its deceptive nature, market manipulation often goes undetected, and this fraudulent behavior can have significant consequences for our markets.

Whistleblowers with information on persons who have violated laws against market manipulation are encouraged to report to the SEC Whistleblower Office. If whistleblowers report such manipulation with the help of an expert SEC whistleblower attorney, the whistleblower may stand to receive rewards of up to 30% of the government's recovered funds, depending on the scale and scope of the market manipulation reported. 

Market manipulation whistleblowers are also offered the benefit of remaining anonymous, if they choose to blow the whistle with the aid of expert securities fraud attorneys. Those who report market manipulation may also receive other protections against retaliation.

Blowing the whistle on market manipulation assists in keeping the markets safe, fair, and just for all market participants, and insures against volatility and inefficiency. Whistleblowers can help make a difference and fight market corruption.

Hagens Berman represents several whistleblower actions under the SEC Whistleblower Program, including representation of high-profile market expert Haim Bodek and the anonymous whistleblower behind the Flash Crash prosecution.  

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