Are you a whistleblower? Is the company you are working for committing securities violations? Have you spotted fraudulent activity at a company that you work for, have worked for or have done business with? Do you suspect criminal activity or insider trading at a financial company? If you have answered yes to any of the questions above, then you could be a whistleblower. Read on to find out how you can be protected without facing retribution from a firm and even compensated for bringing fraudulent activities to light to the securities and exchange commission.
After the economic crisis of 2007-2008 Congress passed the Dodd Frank Act as part of its financial regulation reform aimed at better regulating Wall Street. This new piece of legislation prevents a company from retaliating back at a whistleblower for reporting misconduct at a company. Companies cannot fire an employee who becomes a whistleblower. They cannot also retaliate in ways such as severing benefits, retirement packages or shares earned in a company just because a person reports fraud occurring at a company to the SEC.
In addition to employment protection and retaliation protection the Dodd Frank Act also established compensation for whistleblowers. If a company gets fined or has to reach a settlement in excess of $1 million dollars or more, the whistleblower will receive 10-30% of the fine or settlement amount the accused company has paid out to the SEC. This serves to encourage whistleblowers to speak out against companies and not be afraid of being retaliated back or fired from a firm. Additionally if other law enforcement agencies fine the said company, the whistle blower can receive additional compensation.
As a result of the new whistleblower program established by the securities and exchange commission, the law firm of Labaton Sucharow created a special litigation division to fight on the behalf of whistle blowers in the financial sector and represent them in court. Labaton Sucharow employs financial analysts, forensic accountants and people who have worked in the SEC and successfully prosecuted fraud and regulation violation cases.
The person in charge of the Labaton Sucharow Law Firm division of whistle blower litigation is Jordan A. Thomas. He has served in the division of enforcement of the SEC as an assistant director and legal counsel. An important thing potential whistleblowers should keep in mind is that a whisthleblower can remain completely anonymous if they have a lawyer represent them in court.
Learn about the SEC Whistleblower lawyers