Recently an award of $17 million has been paid to a whistleblower who is represented by Labaton Sucharow LLP. Labton Sucharow is the first law firm in the nation that specializes in representing Securities Exchange Commission whistleblowers. It prides itself in only handling these kinds of cases because of their importance to the integrity of our nation. Labaton Sucharow’s client who received the award made a significant contribution when he exposed wrongdoing by some companies within the financial services industry. This award is also historic because of its size. It is the second biggest award ever given to someone by the SEC Whistleblower program.
The SEC Whistleblower program has been in operation for 6 years now. Its a special program that lets eligible whistleblowers receive a financial prize for successful sanctions that have been collected through enforcement action against violators of the Securities and Exchange Commissions’s rules. Whistleblowers can collect as much as 30% of the sanctions and pocket it for themselves.
The client involved in this case was able to provide crucial information. Without this information, the case would have been inadequate and the offending parties would never have been brought to justice. The offender is a well known major player in the financial markets. They have decided to maintain anonymity so as to avoid being the victim of retaliation by those in their industry. Another misfortune that sometimes hits whistleblowers is blacklisting so that they can never work in the industry again. All matters regarding this case are being kept behind closed doors by the SEC to prevent the identity of the whistleblower from becoming public.
Jordan Thomas, a SEC whistleblower lawyer, represented the client in this case. He said that his client was brave for stepping forward while others with the same knowledge of wrongdoing remained silent and allowed harm to come to investors. Jordan Thomas is the Chair of his law firm’s whistleblower representation department. He looks forward to representing more brave clients in the future and feels that his recent victory is just the beginning.
The SEC Whistleblower program has unique protections and incentives that are offered to eligible whistleblowers. They are guaranteed full anonymity by the federal government, and they also receive employment protections with the possibility of financial awards if the case results in damages against the violator of SEC rules. Congress has set aside a fund of $400 million to reward whistleblowers to encourage them to step forward.