Category: Lawyers

Understanding the SEC Whistleblower Program

In 2010, Congress amended the Dodd-Frank Wall Street Reform and Consumer Protection Act. One of the amendments of the Dodd-Frank Act was the introduction of a whistleblower program to provide financial incentives and employment protections for people who expose possible violations of federal security laws to the Securities and Exchange Commission (SEC).

 

 

The Pioneers of the Whistleblower Practice

 

 

Labaton Sucharow became the first law firm in the U.S. to start a practice that focused exclusively on advocating and protecting SEC whistleblowers. The whistleblower representation practice at Labaton Sucharow involves an in-house team of financial analysts, investigators, and forensic accountants with state and federal law enforcement experience. The team’s leader is Jordan Thomas, the former assistant chief litigation counsel and director in a section involved with enforcement within the SEC.

 

 

Compensation Under the Whistleblower Program

 

 

Under the whistleblower program, eligible whistleblowers are entitled to 10-30% of the monetary sanctions acquired from a successful enforcement action by SEC or in cases where sanctions are more than $1 million. Whistleblowers may also receive additional awards depending on monetary sanctions collected resulting from actions by other law enforcement and regulatory organizations.

 

 

Who are Eligible Whistleblowers?

 

 

A person can be an eligible whistleblower if they provide SEC with original information regarding a possible violation of federal securities laws that have either occurred, are ongoing, or about to happen. The deep understanding of a SEC whistleblower attorney on matters regarding the Whistleblower program and the enforcement of the program allows them to guide whistleblowers through the difficulty involved in reporting possible violations while minimizing the risk of employers retaliating and maximizing potential monetary compensation.

 

 

How Can Information Result in a Successful SEC Action?

 

 

Your information is helpful if it causes SEC to initiate a fresh investigation, re-open a previously concluded investigation, or pursue a new inquiry into the ongoing investigation. Your information is also helpful if it causes SEC to succeed in an enforcement action. Additionally, your information is helpful if it is related to an ongoing investigation and results in an enforcement action. You information is also credible if you report it to your company which in turn reports it to SEC. For information to lead to a successful SEC action, it must be reported to SEC within 120 days.

 

 

You can learn more about the whistleblower program by requesting a SEC whistleblower lawyer for a case evaluation.