Category: SEC

A SEC Whistleblower Receives a Noteworthy Award through Labaton Sucharow’s Help.

The Labaton Sucharow law company is one of the highly recognized representatives of the SEC informants. The firm started its whistleblower representation practice in 2010 after the passing of the Dodd-Frank Act of Wall Street and the Consumer Protection Program that led to the formation of the SEC’s program that protects its sources. Labaton Sucharow was a frontrunner in the provision of legal representation to the whistleblowers, and it has always been dedicated to offering top-notch solutions to its clients. One of the SEC informants who was represented by the law company was recently given a reward that totaled up to $17 million. The financial incentive was one of the highest that the Security and Exchange Commission has ever offered to its sources. Learn more: http://www.prnewswire.com/news-releases/second-largest-sec-whistleblower-award-granted-to-labaton-sucharow-client-300282555.html

The SEC appreciated the intelligence since it helped it to discover the fraudulent businesses that were being carried out by one of the top companies in the finance sector. The identity of the whistleblower has never been reviled since he was represented by an attorney at the SEC. The commission concealed most of the intelligence that they received so as to avoid disclosing any information about their informant since it will cause employee harassment. Jordan A. Thomas who has been leading the Labaton Sucharow’s whistleblower representation service believes that is it right for anyone with useful information on companies that break security laws to inform the SEC. He is one of the company’s senior attorneys and has sufficient knowledge of the securities sector because he worked for the SEC.

Regulations of the Commission indicate that about a third of the penalties that the SEC imposes on the offenders should be given to the source of information. Other government agencies that use the intelligence to enforce the law and collect penalties should also offer a certain percentage of money to the whistleblowers. The rules also protect the careers of the witnesses, and the job security law is supplemented by the Dodd-Frank Act, which has banned companies from mistreating whistleblowers.

The SEC has been working to ensure that the public and company employees are motivated to inform it on any undertakings that defy the state and federal securities laws. His has been by the protection that it has been offering and through the Investor Protection Fund, which has $400 million for awarding the whistleblowers. The fund was formed by the Congress and it is often replenished.

Answers to Common Questions Regarding the SEC Whistleblower Program

Introduced through the 2010 Dodd-Frank Consumer Protection Act, the SEC Whistleblower Program has revolutionized the fight against securities violations. The program has unlocked the ability to report violations from any part of the world and whistle-blowers are secured from unnecessary threats. More specifications have been included in the program, thereby enhancing the reporting capabilities of whistleblowers.

Since its establishment, more cases of securities violations have been forwarded and companies have become more aware of the fact that acting as required by the law is mandatory. To further understand what the SEC Whistleblower program represents, here are answers to questions raised by many people.

Who is a whistleblower and is there criteria under the program?
Under the SEC Whistleblower Program, any individual or group who forwards information to the SEC about violations of securities laws, is referred to as a whistleblower. While most whistleblowers are employees of certain entities, anyone with the capacity to provide factual and verifiable information is welcomed to share details with the SEC about any violations of securities laws. This goes beyond citizenship as the new program allows international submissions.

Must whistleblowers reveal their identity publicly when reporting?
Before the introduction of the 2010 Dodd-Frank amendment, people with useful information about violations would fail to report simply because they feared falling victims of victimization. This is no longer a threat since the SEC Whistleblower Program is designed to protect whistleblowers while fighting securities violations. The program introduced anonymous reporting, which is a big achievement that has opened the doors of reporting for whistleblowers and allowed them to enjoy maximum security while at it.

Are there employment protections for employees who report violations?
Indeed, most employers retaliate when their employees report about securities violations. Today, this is no longer a threat to employees since it is a criminal offense to threaten, sue, demote or act in a demeaning manner to an employee who reports about securities violations. If an employer tries to retaliate and this is confirmed, the employee may sue the employer and will be served free legal representation courtesy of the SEC.

What monetary rewards are whistleblowers paid?
To motivate whistleblowers, the SEC has also introduced a rewards system. Initially, whistleblowers would be paid between 10 and 30 percent of the sanction amount received from the company in question, but from 17th May, 2016, the SEC is issuing upwards of 5$ to $6 million depending on the relevance of the information submitted.

Learn more about SEC Whistleblower Attorneys