The Securities and Exchange Commission formed laws that are devoted to offering protection to whistleblowers who offer to give it information of the fraudulent undertakings of different companies that are in the financial sector. These regulations were created in 2010 after the U.S Congress passed two significant acts, which are the Dodd-Frank Act of Wall Street and the Consumer Protection Program. The laws have been protecting the informants of the SEC by offering them job security and a significant financial reward that motivates them to provide intelligence.
A client of the Labaton Sucharow law company was recently awarded an incentive of $17 million for providing information that assisted the SEC to apprehend offenders who were not following the state and federal law that manage securities. The amount that the whistleblower received was one of the highest that has been offered by the commission since the laws were created about five years ago. The identity of the informant has not been revealed since he or she used the representation of an attorney during the case. The commission also avoided offering extensive information about the case to the public since it may also lead to leaking of the whistleblower’s identity. The informants should avoid being known since it may make them be blacklisted by the employers.
The outstanding whistleblower representation practice of Labaton Sucharow is headed by Jordan A. Thomas. He is a renowned professional in the securities sector since he was involved in the formation of the SEC whistleblower protection laws. Mr. Thomas was also a deputy head of the SEC’s litigation counsel and the assistant director of the commission.
The protection program of the SEC shows that the informants are to be given about a third of the money that is collected as fines to encourage them to offer any intelligence that they have. Other law enforcement departments that use the information should also offer a small portion of the sanctions that they collect as a gift to the source. The Dodd-Frank Act assists in securing the job of the informants by making it illegal for any employer to harass the whistleblower.
The SEC has been working to ensure that the public is motivated to inform it on any fraudulent undertaking in the financial sector. The Congress has also been contributing towards bettering the program. It recently formed the Investor Protection Fund that has $400 million, which are committed to paying the informants.
Securities and Exchange Commission (SEC) has awarded a client represented by Labaton Sucharow with the second largest amount ever to be given to an SEC whistleblower. This information became public in June this year when a whistleblower, represented by SEC whistleblower lawyer, Jordan Thomas, was awarded more than $17 million.
For the past 6 years of its operation, SEC has only awarded one individual with an amount higher than $17 million. According to the laws that founded SEC, a whistleblower is awarded between 10 and 30% of the total sum recovered using the information that he or she provides to the commission. With an award of $17 million, it can be estimated that the information submitted by this particular individual may have helped the commission to recover up to $100 million of wrongfully gained wealth.
The information provided by this particular individual has led to sanctions against a major financial market player. Due to the request of the whistleblower to remain anonymous, the name of the company involved has also not been revealed. This move helps to ensure that no one can reveal the identity of the individual indirectly.
The SEC whistleblower attorney, Jordan Thomas, has been particularly pleased with his client’s courage to come forward and report fraudulent activities. He encourages other people with crucial information to report such incidences, as the law protects them. Speaking out helps to protect investors who may be harmed if the wrongful doings of the financial market players are revealed and the participants punished. Thomas is not only a renowned lawyer, but also the chair of the Whistleblower Representation Practice, a branch of Labaton Sucharow. This information was originally reported on PRNewswire as outlined in the following link http://www.prnewswire.com/news-releases/second-largest-sec-whistleblower-award-granted-to-labaton-sucharow-client-300282555.html
Thomas has been an outstanding attorney. He is known for representing the first ever whistleblower to receive an award for his participation. Thomas has also been involved in successfully charging an employer who retaliated against a whistleblower. His efforts have seen an increase in the number of people coming forward to report fraudulent individuals and firms to the SEC.
SEC was established in 2010 after the Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Act aimed at creating a new whistleblower program that provided individuals with both incentives and protection. The program was necessitated by the unprofessionalism in Wall Street that led to the 2008 financial crisis. So far, the program has been successful. It has helped recover millions of dollars that belonged to investors. Currently, over $400 million in awards is waiting to be given to individuals who provide the Commission with information that leads to fruitful sanctions. This information was originally mentioned on SEC whistleblower advocate’s website as provided in this link http://www.secwhistlebloweradvocate.com/program/program-overview
Whistleblowers from all aspects of life are coming out in large numbers to blow the whistle on a number of securities violations that they have come across to the SEC. In the year 2010, Congress gave the green light for the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This Act is considered as the U.S. Financial regulation that is most overhauling ever since the era of the Great Depression. The Dodd-Frank Act has a number of important reforms and among the most important of them is the whistleblower program that is new. It promises to provide financial incentives and noteworthy employment protections for persons who report any possible violations of any federal laws on securities to the SEC (Securities and Exchange Commission).
Labaton Sucharow Law firm became the first among the existing law firms to start a practice that is focused solely on advocating and protecting SEC whistleblowers in response to this historic legislation. The SEC Whistleblower lawyers borrow heavily on the market-leading litigation platform on securities from the Labaton Sucharow Law firm. The SEC Whistleblower Program has an in-house team of word class financial analysts, investigators as well as forensic accountants that have valuable experience in state and federal law enforcement. This will enable the provision of unparalleled representation for all the whistleblowers under the program.
Jordan A. Thomas, the former Assistant Chief Litigation Counsel and Assistant Director in the SEC Enforcement Division lead the practice. During his stint at the SEC, he played an important leadership role during the Whistleblower Program development. This included the drafting of the proposed legislation and rules for final implementation. SEC is supposed to pay the whistleblowers deemed eligible a 10-30% of the total monetary sanctions netted when the SEC enforcement action is successful and the sanctions amount exceed $ 1 million. If such thresholds are met then the whistleblowers will be eligible for other additional awards that will be based upon the monetary sanctions made in other related actions instituted by other law and regulatory enforcement organizations.
Contacting the Program
The Act further prohibits any retaliation by the employers as against the whistleblowers that make the report to the SEC in pursuant to the rules of the program. Whistleblowers are also able to make their reports anonymously if an attorney will be representing them. Whistleblowers can contact the team using email, telephone or via electronic submission through the website. It is also important to note that you should not give any information that could lead to the identification of the securities violators. There are translation services available for the international whistleblowers.