The enactment of Dodd-Frank Wall Street Reform and Consumer Protection Act in the U.S in 2010 represents the greatest overhaul of the U.S financial regulation since the Great Depression. Among its reforms is the establishment of a whistleblower program with significant financial incentives and employment protections allowing individuals to report the possible violation of securities laws to the Securities and Exchange Commission (SEC).
In response to the enactment of Dodd-Frank Act, Labaton Sucharow established the first firm in the country focusing on protecting and advocating the implementation of the historic legislation. Combined with the company’s market-leading securities litigation platform, Labaton Sucharow leverages a world-class team of forensic accountants, analysts, and investors with the government agencies to represent the whistleblowers equally. Jordan A. Thomas, a former assistant director at SEC, leads the practice of implementing the Dodd-Frank Act.
Under the rules of Dodd-Frank Act, eligible whistleblowers are entitled to a pay of about 10-30 percent of monetary sanction realized from a successful SEC actions exceeding 1 million penalties. Upon meeting the threshold, the whistleblower may also receive additional awards depending on the related financial penalties brought forward by other regulatory and law enforcement agencies. Interestingly, the program prohibits employers from retaliating against a whistleblower reporting to the SEC under the provision spelled under the Act. Interestingly, it is legally allowed for a whistleblower represented by an attorney to report possible securities violation anonymously.
SEC may be reached by email, telephone or an electronic submission to their official website to report possible securities violation or seek a case evaluation. They do not charge case assessment and consultation fee and be assured of a confidential and protected representation by the attorney-client privilege. Although it is not strongly encouraged, whistleblowers are not required to submit personal information or names of the possible securities violators to the SEC during the initial consultation. Furthermore, whistleblowers seeking internationally, they may request for translation services upon reporting a possible securities violation.
With its unique anonymous reporting and whistleblower presentation, SEC Whistleblower Program encourages silent whistleblowers to report possible securities violation to the SEC in an attempt to revolutionize the enforcement of securities laws. Alongside Jordan’s knowledge of and experience as a former assistant in the implementation decision, Labton Sucharow’s clients benefit from unique services including anonymous reporting, monetary awards and employment protection.