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