SEC Whistleblowers came to be when in 2010, Congress had enacted the Dodd-Frank Wall Street Reform along with the Consumer Protection Act, and has been the most sweeping overhaul within the U.S. financial regulation since the Great Depression. Within these important reforms, the new whistleblower program was established by the Dodd-Frank Act, the whistleblower program provided significant employment protections and financial incentives to the individuals that report possible violations to the federal securities laws in the Securities and Exchange Commission. In response to the historic legislation, Labaton Sucharow is the first law firm in the country that established the practice that exclusively focused on advocating and protecting for the SEC Whistleblowers. In building on the firm’s market-leading securities litigation, the SEC Whistleblower lawyers have leveraged on financial analysts, a world-class in-house team of investigators, and forensic accountants with state and federal law enforcement experience that helps to provide for the unparalleled representation of whistleblowers. Jordan A. Thomas, who is the former Assistant Chief Litigation Counsel and Assistant Director for the division of enforcement for the SEC. While with the SEC, Jordan has played a leadership role within the development in the Whistleblower Program, which included the final implementing rules and drafting the proposed legislation. In the rules of the program, it is required that the SEC pays for eligible whistleblowers 10 to 30 percent of monetary sanctions that are collected in result of successful SEC enforcement actionsor actions that have sanctions that exceed $1 million.
On June 9th, the securities and exchange commission that more than $17 million was awarded to a former company employee who had a detailed tip that substantially advanced in the agency’s investigation and ultimate enforcement action. This is the second-largest award that has been issued by the SEC since it began the whistleblower program nearly five years ago. The SEC had issued an award of $30 million in September of 2014, and in October of 2013, there was an award of $14 million. In addition to the $17 million awarded, 32 tipsters have been awarded through the agency with more than $85 million in that time. The Whistleblowers are eligible to receive an award if they have voluntarily provided the SEC with information that is unique and will lead to successful enforcement actions. The identity of the whistleblower has always remained anonymous for his or her safety.