The United States Congress assisted in transforming the regulations that manage the financial industry by passing the Consumer Protection Act and the Dodd-Frank Wall Street Reform. The SEC formed the whistleblower protection program under the Doff-Frank Act, and it has been crucial in motivating people to report cases to the commission. The rules of the plan state that the SEC should ensure that the informants have job security and are also protected from being harassed by their employers. It also offers a significant financial incentive, which is set at 10 to 30 percent of the collected fines. An informant of the SEC who was represented by the Labaton Sucharow law company was recently given $17 million as a reward for the helpful information that he offered the commission.
The whistleblower assisted the Securities and Exchange Commission in the unearthing of fraudulent undertakings of one of the major corporations in the finance sector. Cases that deal with securities are usually significant, and therefore, it is important for the informant to hide his identity. According to the SEC, the whistleblower should hire an attorney to represent him so as not to disclose his identity. The Labaton Sucharow’s service to the awarded whistleblower was exceptional, and it ensured that his identification was not disclosed. The whistleblower services of Labaton Sucharow are headed by Jordan A. Thomas. He formerly worked at the SEC as deputy director, and during his tenure, he played a significant role in the formation of the whistleblower protection laws. Mr. Thomas’ other achievement is being the attorney who represented the first public company employee to receive an award from the SEC.
The SEC is striving to ensure that many people are encouraged to inform it about organizations that do not operate by the state and federal securities. Some of the techniques that are used by the institution include offering a monetary reward and job security. An Investor Protection Fund was created by the Congress, and it ensures that the informants of the SEC are given their financial incentives in time. About $400 million is currently deposited in the fund’s account, and the amount is regularly replenished.
Labaton Sucharow established its whistleblower representation practice in 2010. The company has been dealing with securities cases since it was created 50 years ago. It is renowned for the quality of plaintiff attorneys that it provides to its clients. The Benchmark Litigation, Chambers and Partners and The Legal 500 acknowledge the law firm for its services.