Labaton Sucharow client recently received the second largest whistleblower award for reporting a wrongdoing in a financial service company to the SEC. The firm proudly announced that its client got a whopping $17 million from SEC Whistle Blower program. According to Jordan A Thomas, the chairman of Labaton Sucharow, the client provided crucial information that led to SEC sanctions against the offenders of the code of conduct in the financial sector.
Thomas lauded the client for his courage that enabled him to step forward when others chose to remain silent despite having knowledge of several malpractices in the financial industry. This was one of the largest cases that SEC has handled since the program became operational six years ago. The program allows those who reveal wrongdoings to get between 10 and 30 percent of the total sanctions collected from the offenders.
The program enables whistleblowers to report anonymously to avoid retaliation from the offending companies or individuals. The program also does not make public the instances where the whistleblower played a role. Eligible whistleblowers can now report several violations of federal security rules without fear of losing their jobs. To ensure the program works effectively, Congress came up with an investor protection fund that currently has more than $400 million balance to provide awards.
The program has attracted interests from many law firms in the country. Some firms even have lawyers specialized to represent whistleblowers in proving their cases. The first firm to come up with a specialized whistleblower unit in its practice portfolio was Labaton Sucharow. The unit is exclusively focused on helping whistleblowers prove their arguments during the SEC summons and also provide them with protection. Several law firms have tapped into the rich potential of this program by forming various units tailored for SEC whistleblowers.
The SEC Whistleblower program has a strong backing from the federal government. Its presence is a milestone achievement for people in the business sector who were always intimidated by large corporations. Such individuals now have a voice and the courage to hatch malicious plans that are meant to undermine ethical standards in the financial sector. Through a qualified SEC whistleblower lawyer, these people also have the opportunity to amass huge monetary benefits from their bold move. SEC strongly discourages individuals from providing their personal information including their names for security reasons. Most law firms offer translations services to individuals who do not speak good English upon request.