Category: Lawyers

Whistleblowers Given Greater Protections As Record Payout Announced By Labaton Sucharow Team

The financial industry has always been seen as one filled with complex rules and regulations many people find it difficult to navigate without the assistance of experts in this often closed community. The Labaton Sucharow law firm has over 50 years of experience in representing clients from the financial industry, and is looking to use this experience as it develops its SEC whistleblower program headed by respected financial attorney Jordan Thomas who played an integral part in drafting the Dodd-Frank Act that introduced new regulations for the industry.

Jordan Thomas and his team of financial investigators and attorneys have recently worked with an SEC whistleblower who received the second largest payout in the six year history of the program at $17 million. The introduction of financial rewards came after the 2008 economic crisis resulted in the U.S. Congress looking for ways to increase financial regulation in the U.S. economy; as part of the Dodd-Frank Act the SEC allows a financial reward of between 10 and 30 percent of any fines to be given to individual whistleblowers based on the quality of their evidence. Jordan Thomas and his team worked on the $17 million payout for the whistleblower they represented and made sure to explain all rewards are paid from a fund with $400 million in reserve to make sure rewards are paid promptly to protect the identity of any whistleblower.

The latest issues facing the SEC whistleblower program include the protection of individual whistleblowers who may choose to not reveal their identity in a bid to remain an active part of the financial industry. Identity issues have been faced by Jordan Thomas and his team at Labaton Sucharow who were part of the prosecution of an employer who victimized an employee for their role in the whistleblower program.

Labaton Sucharow have taken a great interest in ethics across the workplace in the U.S. and went so far as to commission a 2011 survey about whether employees would be willing to become whistleblowers, 78 percent responded positively if they could retain their anonymity. The growth of the SEC whistleblower program comes at a time when members of the financial industry have the chance to provide evidence of financial wrongdoing with their own employment protected and financial rewards available for the evidence provided.