With the increasing reports of SEC whistleblower awards, many law firms have established special divisions to exclusively handle whistleblower cases. Labaton Sucharow was the first law firm to come up with a fully functional department for whistleblowers. The law firm embarked on a fresh mission to train its lawyers in readiness for such cases. The company’s efforts bore fruits when SEC awarded one of its clients $17 million after he reported a wrongdoing in the financial sector. The recent award means that the firm has the capability to handle such cases successfully. According to their CEO Jordan A Thomas, they expect a surge in the number of clients in the coming days.
The viability of the program has been boosted by the shift in perception of the society. People from all walks of life are now more courageous, and they are willing to break their silence to report a wide variety of malpractices in different sectors. If this trend continues, the country’s financial sector will soon be back on track after plunging due to the effects of 2009 economic crisis.
The program requires SEC to pay deserving whistleblowers between 10 and 30 percent of the total sanctions collected from the offending companies. The sanctions must have a monetary value not less than $1 million for it to be applicable. The program also protects eligible whistleblowers from any possible actions from the companies affected. The whistleblower’s name and details are considered private before and after the case. Whistleblowers are also assured of their jobs.
SEC Whistleblowers can hire lawyers to present them, or they can do it themselves. However, it is advisable that they hire a lawyer to represent them while they remain anonymous. This reduces the risks of case interference. However, companies found guilty of retaliating can be prosecuted under the rules stipulated in the Dodd-Frank Act.
If you have noticed companies violating SEC rules, it is upon you as a responsible citizen to report them. By doing this, you not only become a hero, but you also stand a chance to be a millionaire.