The SEC Whistleblower Attorneys And What They Represent

The SEC Whistleblower Attorney is a team of professionals that specializes in legal services that affect issues to do with securities violations. The firm through Labaton Sucharow has advanced the agenda of the SEC Whistleblower Program by ensuring whistleblowers are taken through the requisite steps that will help them understand what reporting violations entails.

The group came together to work with the SEC Whistleblower Program after the Dodd-Frank amendment was effected in 2010 to allow more reporting procedures and security to whistleblowers. Since inception, the team has worked on hundreds of cases forwarded by whistleblowers and has been effective in among other areas guiding them to understand the legal aspect surrounding compensation and rewards.

Determination of cases
The SEC Whistleblower Program is guided by a set of laws that may prove too technical for the average mind to digest. This is the reason the SEC Whistleblower Attorney has been in the forefront to ensure whistleblowers understand what makes a violation and what would not qualify. Before proceeding to the SEC to present information, it is advisable inquire with the SEC Whistleblower Attorney to understand whether your case is valid and the extent of compensation you are likely to receive.

Disclosure strategies
When sharing information about violations, there is high risk of retaliation. Many people are likely to retaliate or engage in actions that may prove demeaning to the whistleblower. This is one of the concerns voiced by the SEC Whistleblower Attorneys as they have a team that comes up with actionable strategies that can protect whistleblowers from any intimidations. The SEC provides clearly for the protection and rights of whistleblowers and this is something that must be respected even by the perpetrators.

Reviewing the goals and objectives of their clients
Some individuals may hold negative motives against a certain company or business, so they just construct allegations in a bid to bring down the business. This is known well by the SEC Whistleblower Attorneys and they pay attention to ensuring any information submitted represents the truth and that no fabrications with malicious intent are passed to the SEC for consideration. Those caught giving false witnesses may face legal action for trying to defame or destroy an individual or business.

Reviewing risks and rewards
Additionally, the SEC Whistleblower Attorney reviews the risks prevalent in a report to come up with the right amount the SEC is likely to offer as compensation or reward. Many whistleblowers want to know what their actions would earn them.

Whistleblowers Are Protected

Since businesses began, there have been questionable practices. There has been malpractice and misconduct. Since these practices popped up, there have been those who looked to right the wrongs – the whistleblowers. Employers have sought to strike whistleblowers down or keep them from reporting questionable practices.

That was the usual routine until 2010. In 2010, the largest overhaul of financial oversight and Wall Street came into play. The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed. The Securities and Exchange Commission (or SEC) has much more power to investigate inquires and enforce penalties.

This act contained many protections that whistleblowers needed. One of these many protections is the idea that employers can’t take retribution for having a questionable practice investigated. Whistleblowers can now be represented by attorneys and call in practices they wish to report anonymously.

In addition, whistleblowers can earn money by reporting questionable practices. If an investigation results in a fine of $1 million or more, a whistleblower can earn between 10 and 30 percent of that fine. If that threshold is met, and other monetary actions are taken, whistleblowers can earn a percentage of those fines as well.

One law firm has taken many steps to make sure the Dodd-Frank Act is enforced – Labaton Sucharow. They began a whistleblower advocacy team, led by Jordan A. Thomas. Thomas worked at the SEC as the Assistant Director and Assistant Chief Litigation Counsel for the Division of Enforcement.

As part of this team, whistleblowers are able to enjoy all the protections of the Dodd-Frank Act. They also get to enjoy other options that allow whistleblowers to do their job. There are translators for whistleblowers working abroad that don’t speak English. There are three different ways the team can be contacted – through email, by the phone, or by electronic submissions through the Whistleblower Advocate program website. All whistleblowers are given privacy, and protected by the attorney-client privilege. In addition, the initial consultation is free for all whistleblowers.

This new act is already making whistleblowing more attractive to those who were unsure of whether to report practices. A whistleblower, who will remain anonymous to protect their privacy, has received $17 million as their fraction of the initial fine. This is the second largest reward that whistleblowers have received.

An Adequate Response To A Terrible Situation

Working in the financial community brings with it a sense of belonging to a community, and a community that, unless you no longer want to work in the industry, you need to make peace with avoiding treasonous behavior. To this point, no matter how much money the SEC is waiving at people, encouraging them to rat out their fellow employees for perceived infractions, this is quite the opposite of what anyone with a serious career in the financial industry will do.

The SEC has implemented a “Whistleblower” program designed to encourage “anonymous” reporting of crimes and misdemeanors by those working in the industry. This was precipitated by many financial scandals in the first decade of this century, punctuated by the absolutely deleterious mortgage crisis that claimed investment banks, and homes, in its bevy of victims. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was a direct response to the mortgage crisis. Our government had to respond in some way, but encouraging people to report perceived infractions is tantamount to a poisoned financial industry in which there will be an implicit lack of trust among fellow employees.

Apparently there was a study conducted by Labaton Sucharow, and the findings revealed nearly 80% of Americans would be willing to report wrongdoings in the workplace. I don’t think this will ever apply to Wall Street, as there is an entirely different culture there, yet the dangling of financial rewards has, in fact, encouraged some to file Whistleblower reports from their positions in the financial industry. Apparently these people believe in the power of the government to save their reputations, jobs, and otherwise protect them under the aegis of this program.

It is very difficult to establish after one has essentially betrayed the industry in which they work, because their lack of training in litigious aspects of the inner-workings of Wall Street led them to believe that they thought saw something going wrong, that these whistleblowers are not going to be departing from the industry in short order. All the protections in the hemisphere are not going to keep someone who has not been trained in every aspect of the Wall Street community, and who were also not trained by the SEC as to what red flags to look for, that are going to help these people keep their jobs. This is the general idea of the Whistleblower program, however. Learn about the SEC Whistleblower lawyers

This was an adequate, carefully-orchestrated, response to a terrible situation, by our government, and the efficacy of such carrot-dangling programs is yet to be seen.