Utah law provides an incentive program for victims of securities fraud or other persons who voluntarily provide the Division of Securities with material information that leads to a successful enforcement action. Specific conditions which apply to the consideration of the award, including the entire Securities Fraud Reporting Act, can be found at http://le.utah.gov/xcode/Title61/Chapter1/61-1.html

Utah issued its first whistleblower award in 2014 to an investment adviser who tipped off state officials to questionable transactions he had seen when analyzing an elderly client's holdings. Utah officials followed up by bringing a securities fraud case and recovering the money. The whistleblower received $15,000. More about this case can be viewed here.

Yes. In 2016, Utah was one of two states with a whistleblower program aimed at identifying securities law violations. Under Utah's Whistleblower program, know as the Securities Fraud Reporting Program Act, people providing original information leading to the successful enforcement or a covered judicial or administrative action and the collection of at least $50,000 from a violator, can receive up to 30 percent of those proceeds as an award.

The amount of any award will be determined by the Securities Commission based on the significance of the original information, the degree of assistance provided by the reporter and other factors outlined in the Securities Fraud Reporting Program Act. No consideration will be given for an award until after an enforcement action has been successfully completed and a monetary sanction in excess of $50,000 has been collected.

To be eligible for the Whistleblower Referral Award, the fraudulent conduct in question must have occurred after May 10, 2011. Contact the Division of Securities for more information.

The Division Director reviews all complaints and whistleblower referrals submitted to the Division and assigns cases to Division Staff members.  Investigators and Examiners interview investors and other witnesses, review documents, and analyze bank and/or trading records in order to identify potential violations of securities laws.  Upon discovering a violation, the Division may bring a civil or administrative action, or refer the investigation for criminal prosecution.

Possibly.  First, the Division and a federal, state, or county prosecutor must decide whether to file criminal charges.  If criminal charges are filed, the matter proceeds through the court system, which may lead to a conviction.  If convicted, a judge determines sentencing, which may include jail or prison.