How the SEC Encourages The Public to Report Activities of Fraudulent Companies
The Securities and Exchange Commission currently has a program that protects whistleblowers by offering them job security and a monetary reward when they offer useful information on fraudulent activities of various organizations. This program was created after the transformation of the laws of the finance sector in 2010 after the Congress approved the Wall Street Reforms of Dodd-Frank and the Consumer Security Act. These two legislations were the first notable occurrences after the Great Depression.
After the formation of the whistleblower law, various new law firms in the United States that were formed with the primary objective of offering legal services to the SEC informant and protecting their rights. The Labaton Sucharow law firm is one of these companies. It is a pioneer in the sector, and therefore, it is well established to offer highly competent service to its clients. Labaton Sucharow has an outstanding litigation structure, forensic auditor who has excellent expression implementation of state and federal laws, financial analyst, and professional internal investigators whose operations are guided by a whistleblower representation program.
All attorneys who work for the Labaton Sucharow company are highly committed to offering legal representation to the whistleblowers. The activities of the firm are headed by Jordan A. Thomas who is a former employee of the SEC where he served as its assistant director and the SEC Enforcement Division’s deputy principal litigation counsel. Mr. Thomas is appreciated for the major roles that he played in the drafting and enforcement of the whistleblower program when he was still in office.
The whistleblower protection laws indicate that the monetary reward that should be given to the informant is 10-30 percent of the sanctions that were collected from the law breakers. The threshold of penalties is set at one million dollars. However, the whistleblower’s reward can be increased if more money is collected due to enforcements of other agencies. According to the Dodd-Frank Act, the employer should not revenge to the SEC informant in any way.
The commission advises the whistleblowers who would like to report cases without revealing their identities to use the representation of attorneys. Consultations at the SEC are free, and the information that is given is covered by client-attorney privilege. The informants should also avoid giving details such as address and name when offering information to the SEC.