SEC Center for Complaints and Enforcement Tips

By Analyst: Matt Cavallaro
October 15, 2009

One positive that has emerged from the financial collapse of 2008 is individual investors are becoming more vigilant in regards to reporting abuse by money managers. Historic cases of investor fraud by the likes of Bernie Madoff and Allen Stanford has generated a general level of mistrust for Wall Street.

The United States Securities and Exchange Commission (SEC), the primary securities regulatory agency of the U.S., offers several ways to file a complaint and provide tips on potential violations.

Complaint center: http://www.sec.gov/complaint/selectconduct.shtml

Here, investors can stage a complaint for buy or sell orders, detail any problems with a brokerage firm or broker, cite a potential manipulation of a security’s price/volume and fraudulent/unregistered offer or sale of a security, lodge a financial privacy grievance, report instances of cold calling and any problems with mutual funds, retirement funds, and other accounts, amongst others.

The SEC Center for Complaints and Enforcement Tips also provides an email address, enforcement@sec.gov, to cite potential security law violations. Investors can also forward investment-related e-mail spam to the same address.

The SEC also provides a database page of “Fast Answers” for federal security law questions (http://www.sec.gov/answers.shtml).

Print form or letter complaints are also accepted. Investors can file complaints to the SEC at 703-813-6965 or contact the SEC Complaints and Enforcement Tips by writing to:

SEC Complain Center
100 F Street NE
Washington, D.C. 20549-0213

Those filing complaints or tips are not required to furnish any personal information, but the SEC recommends including your name, mail and email address, and a contact number. It is also suggested that the cited individual or company’s name, mail address, telephone number, and website address be included. Details of the complaint are of major importance, including the nature of the potential violation and the circumstances surrounding it.

The SEC lists the following disclosure relating to the procedure after a complaint or tip is filed:

We thoroughly review and evaluate your information so that we may refer it to the appropriate SEC office. The Office of Investor Education and Advocacy will handle certain general questions about the securities laws and complaints relating to financial professionals or a complainant's personal financial matters. The professionals in this office can counsel you regarding possible remedies and may, under appropriate circumstances, approach brokerage firms, advisers or other financial professional concerning matters you have raised.

Attorneys in the Division of Enforcement evaluate information and tips concerning violations of the federal securities laws. It is the general policy of the SEC to conduct its investigations on a confidential basis to preserve the integrity of its investigative process as well as to protect persons against whom unfounded charges may be made or where the SEC determines that enforcement action is not necessary or appropriate.

Subject to the provisions of the Freedom of Information Act, the SEC cannot disclose the existence or non-existence of an investigation and any information gathered unless made a matter of public record in proceedings brought before the SEC or in the courts. You can find information about public enforcement actions on our Web site.