Jordan Thomas recently led his team at Labaton Sucharow LLP to secure a substantial award for a client who reported a transgression in a very high-profile case. This is the second largest SEC whistleblower award given to date.
Labaton Sucharow LLP is the nation’s first practice to exclusively dedicate itself to represent SEC (Securities and Exchange Commission) whistleblowers. This case in question was awarded more than $17 million to a client who exposed a significant transgression in the financial services industry.
It is the second largest award from the SEC Whistleblower Program, now in its 6th year. This program allows whistleblowers to receive between 10 and 30 percent of the total awards won in a successful enforcement action.
This whistleblowing client provided great information that led to authorizations against a major company in the market. This client, as with most cases, chose to remain anonymous to avoid possible retaliation. The SEC does not reveal cases where the whistleblowers played a role to help prevent revealing the identity of the whistleblower.
The SEC Whistleblower Program has unique protections and incentives for eligible clients. Clients, including the one in this particular case, can report any possible federal violations anonymously with added employment protections. They also have an opportunity to gain substantial money from the case. Congress has even established an Investor Protection Fund that ensures adequate funds are available and currently has a balance of over $400 million.
In 2010, Congress enacted the Dodd-Frank Wall Street Reform and also the Consumer Protection Act, which was the largest overhaul of financial regulation since the Great Depression. As part of the Dodd-Frank Act, the whistleblower program was created to entice people to report violations to the SEC.
As part of the rules, the SEC is required to pay these whistleblowers the 10-30% of the sanctions, as stated before, but only if the case is won and the sanctions exceed $1 million. If those requirements are met, they may also be eligible for other awards based on the money collected in related actions by other law enforcement agencies. The Act also prohibits and will prosecute any retaliation against SEC whistleblowers.
A SEC attorney is competent in the complicated laws of the Security Exchange. Thousands of people are effected each year by securities fraud that is committed against investors. The Dodd-Frank act emphasizes that whistleblower rights be protected. Often times, turning over pertinent information creates enemies and you could find yourself falsely terminated. This is when most people rely on the legal representation of a SEC Whistleblower attorney. They will fight for your rights and get you the compensation you deserve to successfully win your claim. You don’t have to worry about fighting your legal battles on your own.
Labaton Sucharow was one of the first attorney’s to dedicate his entire practice to SEC laws. He was one of the first attorney’s in the industry to do so. He is one of the top leading professionals in real time SEC laws. He has played a major role in implementing SEC laws to where they stand today. Sucharow admits that valuable information that saves the SEC thousands of dollars in investigating and resources. He understands whistleblower’s are entitled to 10-30% of every million that is collected. You get the money thst you need when you’ve been treated poorly by your employer as a whistleblower.
You’ll discover how to win your case with a professional SEC whistleblower lawyer that will give you a free consultation and legal advice on your claim. They will sit down and discuss your case options with you. It is important to maintain your privacy to avoid being blacklisted. A SEC attorney will maintain your confidentiality and ensure you will have discretion with your claim. Sucharow has won of the largest SEC claims in history for his client. His client received over 56 million dollars in a recent court proceeding.
The Securities Exchange is attempting to build the trust of their investors. The federal government is cracking down on individuals who affect investors through financial fraud. They have said that unscrupulous practices have discouraged investors. The goal is to keep implementing laws that will protect consumer rights. A whistleblower is now getting the protection that is highly deserved. You’re not sure what to do? Call a legal professional that can help. They don’t collect unless you win your claim. Discover how to give yourself a better chance of winning your claim with a professional that can help. Discover how to win your claim through the representation of competent legal counsel.
The SEC Whistleblower Attorney highlights some of the few issues that inspired the federal government to push for the introduction of the SEC Whistleblower Program. The program came into the limelight in 2010 when the Dodd-Frank Consumer Protection Act was emended to offer better capabilities and protection to whistleblowers. This was after many cases went unreported and others left unattended for many years.
Other perpetrators also intimidated whistleblowers to an extent that individuals with new information could not make an attempt of exposing the ills propagated by certain companies. Below are the main factors that inspired the decision to come up with the SEC Whistleblower Program.
Lack of sufficient reporting capabilities
Before the 2010 amendment to the Consumer Protection Act, whistleblowers were not adequately catered for and most of them feared for their lives because there were no adequate measures to protect them from the wrath of individuals who were reported for violating securities laws. Most of them could not share information because this would be made public, thereby putting a strain on their lives.
However, the SEC Whistleblower program came with many features like the anonymous reporting provision that would allow whistleblowers to report securities violations without putting their lives into danger.
Additionally, employers can no longer intimidate or fire an employee for exposing ills because this is a right that has been incorporated into the law. Those thought to have intimidated or in any manner retaliated against the goodwill of a whistleblower to expose them are sued to face legal action.
The need for international coverage
Violations happen anywhere in the world because business is not a confined area that is available in some part of the world and absent in others. Therefore, there was need to come up with a system that would make it easy for whistleblowers from any part of the world to share useful information about violations. The International reporting provision that came with the SEC Whistleblower Program is a step that enabled whistleblowers from any corner of earth to report rogue business individuals.
Awesome compensation to motivate whistleblowers
Lack of motivation may also make it difficult for a whistleblower to share information about the ills happening around him/her. Most of them viewed this is a useless step that would not benefit them at the end of the day. The SEC Whistleblower Program has eliminated this notion through the introduction of a compensation package that expends to as much as $5 million for information shared about violations.
Learn more about the SEC Whistleblower lawyers
In the past, the United States has experienced numerous financial frauds committed by investment bankers and financial institutions in the past. These fraudulent individuals use their positions to enrich themselves while the public suffers from the economic problems created thereof. In order to resolve this issue, the Securities and Exchange Commission (SEC) was established. The office is charged with the responsibility of investigating and recovering funds lost through fraudulent activities.
When SEC was formed, its main challenge was identifying individuals who were breaking federal securities laws. It needed to rely on whistleblowers in order to accelerate the process of identifying criminals and investigating them. However, the laws that existed at the time did not provide the secure platform where this exercise could be done. To this end, the office teamed up with Dodd Frank-Frank to sponsor a bill to the Congress.
In 2010, the Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. The new law brought several changes on how the United State’s financial industry could be regulated. Through the Act, the SEC was able to establish a new whistleblower program. This new program has numerous incentives that have resulted to an increase in the number of people coming out and reporting financial frauds to the SEC. The SEC has in turn been able to prosecute many individuals besides recovering some of the wrongfully gained funds.
The program has three main incentives: employment security, money and privacy. The Dodd-Frank Act provides all financial whistleblowers with job protection. Unlike in the past when whistleblowers could lose their jobs if their employers discover them, the current law ensures that companies respect whistleblowers. Secondly, whistleblowers enjoy monetary benefits. They are awarded 10-30% of all money recovered by the SEC if the amount sanctioned is more than $1 million. This rule applies to funds recovered by other law enforcers using the information provided by the whistleblower.
Whistleblowers have the option of providing the information anonymously. This incentive is important to individuals who fear for their personal safety and that of their family members. With this option, a whistleblower can use the services of a SEC Whistleblower attorney to report fraudulent activity. The lawyer will then act as a link between the individual and the SEC. Extra measures are taken by the SEC Whistleblower attorney to ensure that the client remains anonymous and that he or she enjoys the full protection of the law, in case his or her identity is revealed. The above incentives have completely transformed the confidence of whistleblowers. This information was originally reported on SEC Whistleblower Advocate’s website as seen in this link http://www.secwhistlebloweradvocate.com/program/program-overview
Dodd-Frank Act became a federal law on July 21, 2010, after being signed by President Barrack Obama. The primary goal of passing the act was to protect the U.S. financial system from the financial crisis such as the one that occurred back in 2008 and left millions of Americans jobless. This act will police the financial system and avert excessive risk-taking, which caused the financial crisis. The development of a whistleblower program was one of the many benefits that came with the passing of Dodd-Frank Act. The program offers employment protections and rewards individuals who report potential securities laws violation and integrity breaches to the SEC.
Labaton Sucharow is a law firm that reacted to the sweeping legislation by establishing a practice purposely focused on protecting and representing SEC whistleblowers in court. The firm has an established securities litigation platform. Its Whistleblower Representation Practice is managed by a team of specialists consisting of financial analysts, forensic accountants, and investigators who have unmatched federal and state law professional expertise. The experts represent whistleblowers and ensure that their rights are respected.
Jordan A. Thomas, head of the practice
Jordan Thomas, who previously served as Assistant Chief Litigation Counsel and Assistant Director for the SEC’s Division of Enforcement, leads the Whistleblower Representation Practice. He played a significant role in developing the Whistleblower Program. He participated in the drafting of the suggested legislation and final execution rules.
How whistleblowers will benefit from the program
The rules of the whistleblower program clearly state that SEC should pay qualified whistleblowers 10 to 30 percent of finances collected when the SEC enforcement action becomes successful, and the monetary sanctions go above $1 million. In case this threshold is achieved, whistleblowers will enjoy additional awards from monetary sanction collected in similar actions forwarded by law enforcement and regulatory organizations. The Dodd-Frank Act outlaws any form of retaliation by employers or bosses against whistleblowers who forward claims of possible violations of laws to the SEC. Whistleblowers are offered a chance to report integrity breaches and violation of laws anonymously if an attorney is representing them.
Interested individuals can visit Whistleblower Representation Practice’s website to enlighten themselves on the SEC Whistleblower Program and probably submit their cases for evaluation. The first case evaluation and consultation is offered free of charge. In addition, all the cases electronically submitted to the website are confidential. Additionally, an attorney-customer privilege protects all the issues discussed between a client and the representation team.
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