Time to time, news makes it to the public that one company or the other has been caught engaging in insider trading. However, there are still many deals that happen in secret, and the people who witness the deals being made are too scared to come out and speak against it. This is the reason why incentives such as rewarding the people that report these mistakes were put in place by the SEC. In response to these, firms such as Labaton Sucharow LLP have been set up to specifically deal with such cases. Recently, a lawyer was awarded a whopping $17 million for availing information that pointed towards a trade irregularity.
The SEC does everything possible to recover the money involved in the scam and when it does, 30 percent is awarded as a reward to the whistleblower.
The particular case that was reported was handled in a manner that allowed for the anonymity of the client to be maintained and also the details of the case to be kept a secret. In addition to that, details about the case aren’t supposed to be given during the presentation of the award because this could lead to the accused figuring out who blew the whistle and this could lead to retribution.
The SEC Whistleblower lawyer represented the firm at the awards. He stated that it wasn’t everyday people get to see such courage, especially in cases that include the loss of such huge amounts of money. He was optimistic that the measures put in place to protect the whistleblowers would be improved so that more people could find the confidence to come forward.
Another interesting thing about the case is the fact that the whistleblower is not supposed to attend the ceremony. This is supposed to help in keeping the anonymity of the person. The government has put in place a fund that ensures that all the whistleblowers have been awarded. Funds are added to the account every year.
The two legislations that made this possible are the consumer protection act and the Dodd-Frank Wall Street Reform Act. Through the acts, whistleblowers are able to tell what they know without fear. The firm Labaton and Sucharow is where the SEC whistleblower attorney who brought this case to light practices law.