Financial Fraud / SEC / Qui Tam Cases

Due to the Financial Crisis over the past few years, the United States has turned a critical eye towards finding and punishing fraud arising from the financial sector, either from the misuse of TARP funds, or violations of the SEC or the CFTC regulations. To accomplish this, the government has offered substantial rewards and protections as an incentive for individuals with knowledge of financial fraud.

In return for information possibly leading to enforcement proceedings and monetary sanctions, the government provides whistleblowers with substantial financial rewardsconfidentiality, and protections against employer retaliation.


The Troubled Asset Relief Program (TARP) is a government program that sought to purchase “troubled assets” in an attempt to stabilize the U.S. economy. Since its inception in 2008, the program has grown to include banks, insurance companies, mutual fund and investment companies, and automakers and their related enterprises. TARP fraud could range from material misrepresentations made to the government during the initial selection process, to using the money contrary to the rules and regulations of the TARP agreement or regulations.

A typical agreement may include provisions that limit executive compensation, require reasonable efforts to control costs, or place controls on how the money is spent. Any monies spent contrary to these agreements or regulations may constitute fraud. An individual with relevant knowledge of TARP fraud could be eligible for whistleblower status, and all the rewards and Protections available under the law. More information.


On July 21, 2010, President Obama signed the Wall Street Reform and Consumer Protection Act (H.R. 4173), also known as Dodd-Frank. The bill, in part, is meant to encourage whistleblowers to step forward in response to fraud within the U.S. Financial Sector. Unlike TARP fraud, in which the government must be part of any violation, Dodd-Frank applies to the violation of almost any law regulating securities, commodities, derivatives, or finance. Such fraud may include insider trading, ponzi schemes, bribery, or violations of  the Foreign Corrupt Practices ActMore information about The Forgeign Corrupt Practices Act.

The Act creates incentives for relevant information about fraud in three different areas.

The Securities and Exchange Commission (SEC) is now authorized to pay an award to any whistleblower who supplies relevant information to the agency about violations of SEC regulations. This includes assurances of confidentiality and protections against employer retaliation. SEC enforcement authority applies to federal securities laws, the security industry, U.S. stock and options exchanges, and other U.S. electronic securities markets. Considering the N.Y. Stock Exchange alone has a daily trading value of $153 billion, the potential for fraud is substantial. More information.

The Dodd-Frank Act also authorized the Commodities Futures Trading Commission (CFTC) with similar whistleblower authority as the SEC. The CFTC works to maintain open and fair markets for commodities and futures contracts. This can involve nearly every type of business, including livestock, currency, energy, and insurance. The CFTC is also largely responsible for regulating and maintaining the derivatives market. More information.

Prior to the passage of the Dodd-Frank Act, the derivatives market was largely unregulated. The Act gives CFTC broad regulatory authority which includes not only swaps, but also options and other transactions based on market indices, commodities, rates, and financial interests. It is estimated that in 2009, the total value of these transactions was estimated as over $426 trillion. The Act also gives the SEC authority over “security-based swaps,” which refer to a narrow subset of swaps related to individual securities or loans. More information.

Learn more about Whistleblower Rewards, Protections and Benefits


The firm of Berg & Androphy has extensive involvement in prosecuting complex fraud and securities cases. Our track record is a point of pride with us. We have represented individuals throughout the United States in qui tam cases against large multinational companies that have defrauded federal and state governments.

David Berg’s Securities Fraud Case Results:

  • Led detailed investigation into sub-prime mortgages and derivatives for a $5 billion hedge fund.
  • Lead counsel for 15,000 Limited Partners who sued Marriott Corporation for securities fraud.
  • Negotiated a $425 million settlement, one of the largest involving real estate.
  • Representation involving investigation of options back-dating at Fortune 500 company.
  • Obtained a verdict worth $52 million for Robert Bass’s investment company.
  • Co-lead counsel in the largest securities class action in nation’s history.

For more information, email


This website is designed to provide general information only. This information is not and should not be construed to be legal advice. The transmission of the information found on this website also does not result in the formation of a lawyer-client relationship.

You should be aware that qui tam claims are subject to a Statute of Limitations. The area of limitations periods is complex. There are also first to file rules, public disclosure bars, original source issues, and varying limitations in pursuing retaliation claims. If you wish to pursue your claims, you should promptly seek the opinion of an attorney regarding the merits of your qui tam claim and the applicable statute of limitations.