Recently, Labaton Sucharow announced the Securities and Exchange Commission (SEC) award of over $ 17 million to a whistleblower. The law firm represented the whistleblower for exposing considerable wrongdoings in the financial services industry. The firm was the first in the nation to create a practice that was entirely committed to representing the SEC whistleblowers. In close to six years that the SEC Whistleblower program has existed, the consideration of $17 million is regarded as the second largest to be awarded to a whistleblower.
The program allows eligible whistleblowers to receive between 10 and 30 percent of the monetary sanctions collected from an enforcement action. Labaton Sucharow’s client offered valuable information that resulted in sanctions against prominent figures in the financial markets. In this case, similar with other cases, the whistleblower opted to remain anonymous to avoid blacklisting and retaliation from the employer. The SEC does not reveal the particular cases in which whistleblowers disclose fraudulent activities. This way, they avoid disclosing the whistleblower’s identity.
Jordan A. Thomas noted that his client blew the whistle at a time when other people in the industry were comfortable to remain silent and allow investors to be hurt. Thomas is a SEC whistleblower lawyer and the principal of the Whistleblower Representation Practice at Labaton Sucharow. Thomas points out that in subsequent years, majority of SEC’s biggest and significant cases will be based on the information availed by bold whistleblowers.
Thomas represented the first officer of a public firm to receive a whistleblower award. He also worked, on the first case where the SEC successfully charged an employer for revenging against a whistleblower. With the unique incentives and protection provided by the SEC Whistleblower program, eligible whistleblowers can report likely federal securities violations without revealing their identity. Moreover, Congress has created a restocking Investor Protection Fund in a bid to ensure that they raise enough funds that can be given out as awards. Presently, the Fund has a balance of more than $400 million. This information was originally published on PRNewswire as explained in this link http://www.prnewswire.com/news-releases/second-largest-sec-whistleblower-award-granted-to-labaton-sucharow-client-300282555.html
About the SEC Whistleblower Program
The SEC Whistleblower Program is an initiative that offers protection and financial incentives to individuals that report potential violation of the federal securities laws to the SEC. It was established after the Congress enacted the Dodd-Frank Act. Among its rules, the SEC is obliged to pay 10-30% of the monetary sanctions collected to eligible whistleblowers. An SEC Whistleblower Attorney can represent the Whistleblowers.