Whistleblowers start speaking about violations against the SEC

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.

The origin and importance of SEC Whistleblower Program

SEC whistleblowers have become an important part of the society. They have been bringing to light criminal activities that happen in various institutions and companies. The Whistleblowers Program came to be following a legislation by Congress. It is best known as the Dodd-Frank Wall Street Reform and Consumer Protection Act. The impact of this legislation on financial regulation in the United States is significant, especially after the 2008 economic downturn.

The Dodd-Frank Act protects whistleblowers from fear, harm or intimidation. Informers uncover irregularities and actions against the federal securities laws. They report them to the Securities and Exchange Commission (SEC). It is a risky affair, and if you are not under protection, you could be victimized. Protecting the Whistleblowers ensures that they are safe from the people who they have reported as some may wish to revenge.

Labaton Sucharow is one of the law firms offering legal services to informers. They saw this as an opportunity to represent Whistleblowers. A SEC Whistleblower Attorney both on and off the court represents the SEC Whistleblowers. Labaton Sucharow being the pioneer in providing such attorneys is still in the lead. They have many years of experience and remain trusted by many clients.

The firm has several specialists to help the SEC Whistleblower Lawyer to have a strong case against the defendant. The team comprises of forensic accountants, financial analysts, and investigators. They have the required experience to handle simple and complex cases.

Jordan A. Thomas is the leader of Labaton Sucharow. Mr. Thomas previously worked at the SEC. He served as the Assistant Chief Litigation Counsel in the Division of Enforcement and as the Assistant Director. He was among those who came up with the Whistleblowers Program. His experience gives him a clear understanding of what lawyers need to represent informers well.

The SEC rewards whistleblowers for every successful enforcement action. Whistleblowers receive up to 30% of the money lost or any penalty imposed on the wrongdoer. They also stand to get more if the money in question is more than $1 million. The reward motivates the Whistleblowers to ensure that all illegalities reach the SEC desk.

The Dodd-Frank Act also protects Whistleblowers against the companies they work for. In case the SEC Whistleblower reports something about the company, he or she cannot be fired or mistreated. The Whistleblowers also have the option of not disclosing their identities. In such a case, an attorney must represent them. This way, no one will have anything against the SEC Whistleblowers.