Report Ponzi FLAG IT

Insider and whistleblower guide

Whistleblower guide for Ponzi scheme insiders

Employees, accountants, and business partners often see the problem first: invented statements, money moving between accounts, returns paid before any profits arrive. Federal programs reward insiders who report and protect them from retaliation. The rules are technical, and the order you do things in matters.

Talk to a lawyer first. A whistleblower lawyer can tell you how to report without breaking the law, keep you eligible for an award, and protect your job. Many work on contingency, meaning they're paid only from an award.

The two federal award programs

SEC Whistleblower Program

Securities fraud

  • Created by the Dodd-Frank Act in 2010. Covers fraud involving stocks, notes, investment funds, and most investment contracts, which is where most Ponzi schemes fall.
  • Awards are 10% to 30% of the money collected when the SEC's sanctions in the case exceed $1 million. Awards can also come from related cases brought by other agencies, such as the Justice Department.
  • Your information must be original: based on your own knowledge or your own analysis, and not already known to the SEC.
  • You must give it voluntarily, meaning before the SEC or another authority asks you for it.
  • You don't have to be an employee. Investors, contractors, and outsiders can qualify.
  • You can report anonymously, but to be eligible for an award anonymously you must file through a lawyer.
  • The SEC protects your identity and won't release it in response to public records requests, though it can come out in court or be shared with other agencies.
  • The largest single award so far is about $279 million, announced in May 2023.

sec.gov/whistleblower

CFTC Whistleblower Program

Futures, forex, commodities

  • Also created by Dodd-Frank, with a similar structure.
  • Covers violations of the Commodity Exchange Act: fraud in futures, options, swaps, forex, and commodities, including crypto assets treated as commodities.
  • Awards are 10% to 30% of sanctions collected when they exceed $1 million.
  • Tips are filed on Form TCR, through the online portal or by mail or fax.
  • Anonymous award claims also require a lawyer.
  • The CFTC has awarded more than $580 million since its first award in 2014.

whistleblower.gov

How to file, step by step

This follows the SEC process. The CFTC's is similar, with its own forms.

  1. Talk to a whistleblower lawyer

    Do this before you gather documents or tell anyone at work. A lawyer can check what you're allowed to take, file anonymously for you, and spot problems with your eligibility.

  2. Write down what you know

    On your own device, record what you saw, when, where the records are kept, and who else knew. Specific details, like account names, dates, and amounts, make a tip far more useful.

  3. Submit a tip

    Use the SEC's online Tips, Complaints and Referrals portal and answer "yes" to the question about the whistleblower program. You'll get a confirmation number right away. If you first reported another way, you generally have 30 days to file Form TCR so you stay eligible.

  4. Keep cooperating

    Investigators may contact you, often through your lawyer, for documents or an interview. Answer promptly and send new information as you learn it.

  5. Watch for a Notice of Covered Action

    When an SEC case results in more than $1 million in sanctions, the SEC posts a Notice of Covered Action on its website, usually at the end of the month. Nobody will notify you. You or your lawyer must watch for it.

  6. Apply within 90 days

    File Form WB-APP within 90 calendar days of the notice being posted. Include everything that supports your claim, because information added later may not be considered.

  7. Respond to the determination

    The SEC issues a preliminary determination. You have 60 days to respond before a final order. A denial can be appealed to a federal court of appeals within 30 days.

Expect this to take years. The SEC doesn't give status updates and can't decide award claims until all appeals in the underlying case are finished.

Protection from retaliation

It's illegal for an employer to fire, demote, suspend, threaten, or harass you for reporting securities or commodities fraud to the government or helping an investigation. Several laws apply, and each has its own conditions.

Dodd-Frank Act. Protects whistleblowers who report to the SEC or CFTC. In Digital Realty Trust v. Somers (2018), the Supreme Court held that Dodd-Frank's protection covers people who reported to the SEC, not those who reported only inside their company. Reporting to the agency is what triggers it.

Sarbanes-Oxley Act. Protects employees of public companies, and in some cases their subsidiaries, contractors, and agents, who report internally or to regulators. A retaliation complaint must be filed with OSHA within 180 days of the retaliation, or of when you became aware of it. No particular form is required, and you can file in any language.

Confidentiality agreements. SEC Rule 21F-17 bars anyone from using a confidentiality or severance agreement to stop you from contacting the SEC. A clause that says otherwise doesn't block you from talking to the agency.

State laws. Many states have their own whistleblower protections, which may cover private companies and allow longer deadlines.

Before you report

  • Don't take documents you aren't authorized to access, or remove privileged legal material. Ask a lawyer what you can keep.
  • Don't use company devices or email to contact regulators or your lawyer.
  • Write down what you saw, when, and who else knew, on your own device.
  • Note the deadlines. Retaliation filing windows can be short.
  • If you took part in the conduct, you may still be eligible, but you need a lawyer before you say anything.

Common questions

How much can a whistleblower get?

Between 10% and 30% of the sanctions collected, if they exceed $1 million. Where in that range an award falls depends on how significant the information was, how much the whistleblower helped, and whether they reported internally first, among other factors.

Can I get an award if I was involved in the scheme?

Possibly. Taking part doesn't automatically disqualify you, but it can reduce an award, and people convicted of a crime related to the case aren't eligible. An award also doesn't protect you from prosecution. Talk to a lawyer before you contact any agency.

Do I have to report inside my company first?

No. You can go straight to the SEC or CFTC. Reporting internally first can count in your favor when an award is calculated, but Dodd-Frank's anti-retaliation protection depends on reporting to the agency.

Can my employer make me sign away the right to report?

No. Under SEC Rule 21F-17, a confidentiality, severance, or employment agreement can't stop you from communicating with the SEC about possible securities violations.

Sources

Last reviewed October 19, 2026.