Securities and Exchange Commission (SEC) has awarded a whistleblower more than $17 million. This is the second largest amount that the commission has ever awarded a whistleblower since it was established. Labaton Sucharow LLP, the law firm that was representing the whistleblower, made this announcement. This individual claims to have given SEC crucial information on a high-profile case.
SEC whistleblower lawyer Jordan Thomas, who is an attorney at the law firm, represented the whistleblower. This award will encourage more people to participate in the program. The objective of this program is to eliminate rogue individuals and companies from the financial sector. The whistleblowers help in averting embezzlement of funds by employees of a given corporation. They enjoy witness protection because of the risks involved in reporting such malpractices to the SEC.
Currently, the SEC Whistleblower Program is in its sixth year. It was established after the economic meltdown of 2008. Through the program, individuals that provide information to the commission, leading to the recovery of wrongfully gained wealth, are awarded a portion of the amount. According to the law, the whistleblower is entitled to between 10 and 30 % of the total sum recovered.
The whistleblower had chosen to remain anonymous. This individual provided information that led to sanctions against a major player in the industry. Information about the company and the case that was solved remain a secret. Revelation of such information might lead to the indirect identification of the whistleblower. The advantage of remaining anonymous is avoidance of retaliation and blacklisting. This information was originally published on PRNewswire as provided in this link http://www.prnewswire.com/news-releases/second-largest-sec-whistleblower-award-granted-to-labaton-sucharow-client-300282555.html
According to SEC Whistleblower attorney Jordan A Thomas, the information provided by the individual has helped protect many investors. These investors would have suffered immense losses considering that other players in the financial industry had chosen to keep quiet. He encouraged more people having information on financial malpractices to come forward and help SEC protect investors from companies that have unethical practices.
About SEC Whistleblower Program
The SEC Whistleblower Program started operating in 2010. This was after the Congress deemed it fit to pass the Dodd-Frank Wall Street Reform and Consumer Protection Act. Through the Act, individuals having information on financial frauds are encouraged to report the information to SEC either through a lawyer or personally. They are also entitled to a percentage of the recoverable amount based on their information.