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.