SEC Whistleblower Program, the Advocates, and Enforcers

August 15, 2016

The enforcement of financial regulations in the United States was completely overhauled in the year 2010 when Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. Radical changes were effected to the regulations, a phenomenon that nobody could have earlier envisaged. Individual citizens now have the power to report any violations of the federal security laws to the Security Exchange Commission (SEC). It was the culmination of the Whistleblower program which afforded employment protection and financial motivation to would-be whistleblowers.

The Labaton Sucharow law firm was among the pioneer firms that took advantage of this Act to enforce the SEC regulations. The firm started a practice that was specifically centered on protecting and advocating for the rights of the whistleblowers. It had a securities litigation platform, the Whistleblower Representation Practice, which comprised a team of investigators, forensic accountants and financial analysts with experience in matters of federal and state law enforcement in protecting the rights of the whistleblowers. Among the leading lights was Jordan A. Thomas who was instrumental in the formulation and development of the whistleblower program. He was part and parcel of the team that drafted the proposed legislation including the final implementation rules. This positioned him as an advocate as well as an enforcer of the Act.

In the Act, whistleblowers are entitled to payments of between 10%-30% of the money collected as a consequence of a successful SEC enforcement action and one which exceeds the $1 million threshold. There is also a provision of additional awards in relation to money that is collected and brought by other regulatory and enforcement organizations or groups. These incentives have the element of motivating individuals to report such violations and at the same time preventing would-be violators from such actions. It also has the provision of protecting the whistleblower from the retaliatory actions of his/her employer when such violations are reported in line with the prescribed rules and regulations. Anonymous reporting is allowed under the representation of an attorney.

For inquiries about the program, an individual should contact the Whistleblower Representation Team to request for a case evaluation by using the team’s website, email or through a telephone call. The consultations are free of charge. It is also recommended that an individual should not divulge any identifying or personal information or the names of the violators at the initial stages of the consultations.

The Dodd Frank Act; A Whistle Blowing Program For Your Protection

June 14, 2016

This year, Congress introduced the Dodd-Frank Wall Street Reform and Consumer Protection Act, one of the most sweeping changes of U.S. financial regulation since the Great Depression. Among its several essential reforms, the Dodd-Frank Act is a whistleblower program providing you with considerable employment protections and financial offers for individuals to record possible violations of the federal securities laws for the SEC (Securities and Exchange Commission).

In a reaction to this historical law, Labaton Sucharow was the first law firm within the country to establish a practice completely dedicated to advocating and protecting for SEC whistleblowers. While forming the Firm’s industry- primary securities litigation platform, our Whistleblower Representation Exercise leverages a world -type in-house workforce of detectives, experts that are financial officials, and forensic and investigators using state and federal law enforcement knowledge to supply unparalleled portrayal regarding whistleblowers.

Jordan A. Thomas leads the practice. Thomas, Assistant Chief Litigation is a former Secretary Director inside of the Administration in the SEC’S Unit. During his tenure at the SEC, Jordans competed a control part in the development of the Whistleblower Method, including composing the suggested laws and final implementing regulations.

Under the rules of the program, the SEC is needed to spend 10-30 percent of the monetary sanctions which has been collected which will result if the support exceeds over $1million dollars. Whistleblowers are often qualified to receive extra accolades based on the economical support in relevant measures introduced by additional policies and regulating companies, if this limit is achieved. The Dodd-Frank Act additionally forbids retaliation by organisations against whistleblowers who report to the SEC pursuant to the program regulations.

If they voluntarily supply the SEC using exclusive info that leads to some prosperous enforcement actions, whistleblowers meet the criteria for an offer. The prizes could vary from 10 to 30 percentage of the cash accumulated on sanctions beyond $ 1million.

Jordans Thomas, chair of the SEC Whistleblower attorneys, Labaton Sucharow, stated that “a major gamer was involved in the event stated that that his client the only whistleblower who got a prize.

Legally, the SEC doesn’t show the identity of the whistleblowers. An award for $30 million was the biggest ever was released by the company — in September 2014.