In 2010, the Congress enacted the Consumer Protection Act and Dodd-Frank Wall Street Reform. The Dodd-Frank Wall Street Reform established protection to whistleblowers that came forward and reported possible violations of federal securities laws to the Securities and Exchange Commission (SEC).
Labaton Sucharow LLP announced that the SEC had awarded more than $17 million to a whistleblower that was represented by the firm. The whistleblower exposed significant wrong doings in the financial industry. The sum represented the second largest SEC Whistleblower Award granted to Labaton Sucharow. Jordan Thomas was the lead SEC whistleblower lawyer.
The SEC Whistleblower Program is entering its 6th year. The program allows the whistleblowers that are eligible to receive 10 to 30 percent of the total monetary compensation collected in a successful trial. In the latest award, the whistleblower provided high-quality information that resulted in a guilty verdict of a major player in the financial market. The whistleblower chose to conceal his/her identity. It is a common trend for many whistleblowers as they seek to remain anonymous for personal reasons such as avoiding retaliation and blacklisting. The SEC has a policy of not disclosing the particular cases that whistleblowers player a role in preventing revealing the identity of the whistleblower indirectly.
After the case, Jordan Thomas said that his clients decided to step forward because others in the financial industry had decided to remain silent as the vice prevailed. The silence of others workers allowed other investors to be harmed in the process. Jordan Thomas is also the Chairperson of Labaton Sucharow Whistleblower Representation Practice and a former Assistant Director and Assistant Chief Litigation Counsel in the Division of Enforcement at the SEC. He continued by saying that in the future, the success of many whistleblower cases would be as a result of whistleblowers’ courageousness and willingness to step forward.
Jordan Thomas has a successful record in such cases. He was the one who represented the first officer of a public company to receive the prestigious award. He was also involved in the first case in which the SEC successfully charged an employer for retaliating against a whistleblower. The SEC Whistleblower Program gives unique protections and incentive to the whistleblower. The eligible whistleblowers who report possible federal securities violations are given the opportunity to earn monetary rewards and employment protection. To promote the program and ensure its continuity, Congress established a replenishing Investor Protection Fund.