Labaton Sucharow Client Awarded the Second Largest Monetary Award in SEC Whistleblower Program

The Labaton Sucharow LLP, which is credited to being the first practice that established a fully dedicated practice to represent SEC Whistleblowers, has had its client awarded the second largest monetary award. The whistleblower was represented by a team led by renowned SEC Whistleblower attorney, Jordan Thomas, got an over $17 million monetary award for exposing wrongdoings that are significant in the financial services industry. This award to the client represented by Labaton Sucharow firm was the second largest ever since the SEC Whistleblower program was started six years ago. This program permits whistleblowers that are eligible to get between 10% and 30% of all the monetary sanctions netted in a successful enforcement.
The whistleblower client offered high quality information which was relied upon in making sanctions against a huge player in the industry. The whistleblower ought to be anonymous to avoid blacklisting and retaliation. The SEC does not also reveal the cases where whistleblowers offer help to prevent the indirect revealing of the whistleblower’s identity. Jordan A. Thomas, a SEC Whistleblower lawyer and also chair of the firm’s Whistleblower Representation Practice predicted that many more brave whistleblowers will come forward to report any wrongdoings and this was just the genesis. Jordan also represented the first ever employee to get the whistleblower award. He has also worked in another case where an employer was successfully charged for retaliating against a whistleblower.
About the SEC Whistleblower Program
The Dodd-Frank Wall Street Reform and Consumer Protection Act enactment by Congress in 2010 gave rise to the SEC Whistleblower Program. This program offers significant financial incentives and employment protections for individuals who need to report possible violations of federal securities law to the SEC. Under the program’s rules, SEC is supposed to pay the eligible whistleblowers 10-30% of the monetary sanctions that are successful and actions in which the sanctions collected exceed $1 million. If the threshold is met then the whistleblowers are also supposed to get some additional awards based on successful sanctions by other law enforcement and regulatory organizations.
This Act also prohibits any form of retaliation by the employers against any whistleblower who report to the SEC in pursuance with the program rules. Whistleblowers can be able to make reports on possible security violations anonymously if they are represented by an attorney. Whistleblowers are able to contact the Whistleblower Representation Team in a number of ways like email, telephone or electronic submission using its website. The consultations and case evaluations are usually free, protected by advocate-client privilege and confidential.

SEC’s $17 Million Award Highlights Whistleblower Program

 

Individuals who give the Securities and Exchange Commission (SEC) information about possible fraud and other securities law violations may be eligible for a reward through the SEC Whistleblower Program. The program also prohibits employers from retaliating against employees who submit information about a violation that occurred in the past, is ongoing or that will happen in the future. To claim a reward a person must give the SEC original information that leads to a monetary sanction that totals at least one million dollars.

An unidentified whistleblower recently received a $17 million reward for information about a firm in the financial services industry. This is not the largest reward ever given for information that led to sanctions; one whistleblower received $30 million. The New York law firm, Labaton Sucharow, that represented the whistleblower said their client was the only person to receive the award, since more than one person can act as the whistleblower. Submitting information anonymously is possible if an individual has an attorney submit the required form, however, the SEC does not release whistleblower’s identities.

It takes a while for eligible persons to receive a whistleblower award. There is an investigation and then, if they find violations, the SEC will open a case. Litigation is possible, so it typically takes a significant amount of time before an individual receives their reward for their information.

Whistleblowers are typically employees of the company that they report for possible securities violations because they have access to detailed information and they can provide the SEC examples with specific examples. Anyone with precise information about potential violations may submit a tip about a friend, neighbor or relative. After an individual fills out the form, it goes to the SEC’s accountants and attorneys for review, therefore, a person cannot present a general statement that someone is committing securities fraud. The SEC needs detailed examples to open an investigation. Examples of wrongdoing include misrepresenting securities, insider trading or any violations of federal securities laws. Anyone who isn’t sure that their information qualifies or anyone who wonders if they are eligible to submit a tip through the Whistleblower program should talk to an attorney specializing in whistleblower advocacy.

Learn more: SEC Whistleblower attorneys