The Great Depression of 2007/2008 exposed the rot in the financial industry of the United States. Many financial institutions were forced to seek bailouts from the government. Falsified records and dishonest dealings are some of the aspects that characterized the financial sector. Congress moved swiftly to restore the reputation of the financial industry by enacting the Dodd-Frank Act in 2010 whose primary goal was to protect consumer rights and police the financial sector. The Act is arguably one of the most vital reforms of U.S. financial sector. The Dodd-Frank Act created a unique whistleblower program that offers important employment protections and avenues for individuals to report potential abuses of federal securities laws to SEC.
Labaton Sucharow happened to be the first law firm to react to the historical legislation. The firm established a practice specifically focusing on defending and representing SEC whistleblowers in courts. Labaton is one of the leading providers of securities litigation platform. Its Whistleblower Representation Practice manages a highly trained and talented team of investigators, forensic accountants, and financial analysts.
Jordan A. Thomas, who previously served as the Assistant Chief Litigation Counsel and Assistant Director of SEC Division of Enforcement, leads the practice. Jordan is one of the pioneers in the creation of Whistleblower Program. In addition, he was instrumental in the drafting of the proposed legislation as well as final implementation rules.
Responsibilities of SEC under the Whistleblower Program
The rules of the whistleblower program require SEC to pay worthy whistleblowers 10-30 percent of the collected monetary sanctions due to a successful SEC implementation action or other actions whose sanctions surpassed $1 million. If the above threshold is achieved, eligible whistleblowers may benefit from other additional awards that rely on monetary sanctions collected from the implementation of actions that are brought by other law enforcement and regulatory organizations. The Dodd-Frank Act protects employees from discriminations or punishment from their employers following their decision to report their issues to the SEC.
A whistleblower pockets $17 million from SEC
A former company worker is set to receive $17 million from SEC for providing information that helped the agency to progress in its investigation. According to Andrew Ceresney, SEC enforcement chief, the information offered by the whistleblower helped the agency to come up with substantial evidence within a short period. The award happens to be the second biggest since the whistleblower program was created five years ago. Whistleblowers are likely to receive awards if their information leads to a successful implementation action.
Learn more about SEC Whistleblower attorneys