Whistleblower is a program designed to break the silence and report significant violations to Security and Exchange Commission (SEC). It was during the year 2010 that the Congress enacted Consumer Protection Act and Dodd-Frank Wall Street Reform “currently considered as one of the most sweeping overhauls of US financial regulation since the Great Depression.
Dodd-Frank Act is a reform program, and one of them is whistleblower that provides significant financial incentives and employment protection for individuals who report any possible violation of federal security laws.
Since the company enjoys a market-leading securities litigation platform, the Whistleblower Representation Practice is composed of a world-class team of investigators, forensic accountant, and financial analyst with state and federal law enforcement experience to provide unparalleled representation.
Whistleblowers program is led by Jordan A. Thomas, who is a former Assistant Director and Assistant Chief Litigation Counsel in SEC. Jordan played the leadership role in the creation of whistleblowers program during his tenure at Securities and Exchange Commission including drafting proposed legislation and final rules which were implemented. Learn more about the SEC Whistleblower Lawyers.
The rules of the program require SEC to pay eligible whistleblowers about -30 percent of the total sanctions collected as a result of cases where sanctions exceed $1 million or successful SEC enforcement actions. Whenever this threshold is met, it is also possible for whistleblowers to get additional awards based on monetary sanctions collected in similar actions brought by law enforcement and regulatory organizations.
Dodd-Frank Act also prohibits any retaliation by employers against any whistleblowers in connection with the reporting of incidences to SEC in under the rules of the program. Also, whistleblowers are allowed to report any possible securities violations if represented by an attorney.
For instance, Securities and Exchange Commission claimed in ThinkAdvisor article contended that it has awarded $17 million which is the second highest to be issued to a former company employee who helped federal agency close an investigation related to financial services.
The awarded employee is claimed to have provided assistance and information which enabled SEC staffs to conserve time and resources in gathering evidence to support a case regarding a major financial player. The award was the second highest since the program began within five years. The agency has also awarded 32 tipsters more than $85 million during the same period.