Recently, SEC announced the Labaton Sucharow LLP’s client, one of the whistleblowers who exposed a wrongdoing in the financial services industry would receive more than $17 million. The award is still the second largest from when the SEC Whistleblower Program was launched six years ago. The whistleblowers who report the financial wrongdoing are eligible to 10-30 percent of the total monetary fines collected by the SEC in a successful enforcement action.
Under the rules of the program, the whistleblowers can even get more rewards if there are monetary sanctions collected in other cases brought by other law enforcement organizations to the participants reported by the whistleblower. The whistleblowers are protected by the Dodd-Frank Act that protects any retaliation measures by employers to whistleblowers under the program rules. http://www.prnewswire.com/news-releases/second-largest-sec-whistleblower-award-granted-to-labaton-sucharow-client-300282555.html
Congress enacted the Dodd-Frank Consumer Protection Act in 2010. The role was to implement the most efficient U.S. financial regulation since the great depression. Some of the reforms that were introduced in the Act include the new whistleblower program that offers protections to employees and offering financial incentives for individuals with the courage to report the possible violations of the financial laws set by Securities and Exchange Commission (SEC).
Labaton Sucharow has been on the front line being the first law firm in the U.S. to protect and advocate for the SEC whistleblower. The law firm has an established securities litigation platform dedicated to whistleblowers representation practice with an in-house team of financial analysts, investigators, and forensic accountants with experience in both state and federal level. SEC Whistleblower attorney, Jordan A. Thomas, the former assistant director and chief litigation counsel in SEC enforcement division is the leader of the practice.
SEC Whistleblower lawyer, Mr. Thomas did not just start Labaton Sucharow law firm out of nowhere; he played a critical role in the leadership and development of the Whistleblower program including the drafting of the proposed legislation of the Act. In the recent whistleblower award, the Whistleblower provided high-quality information that led to sanctions against a well-known player in the financial industry. The whistleblower asked his/her representative to remain anonymous to avoid any form of retaliation and blacklisting.
According to Thomas, his client chose to blow the whistle when others in a better position to do it remained content and allow unsuspecting investors to be scammed. Thomas believes that his/her courageous act will inspire more whistleblowers to come forward when they face such dilemma. Mr. Thomas also received the award on behalf of the whistleblower to ensure minimized chance of retaliation against the whistleblower.