The SEC offers an Encouraging Reward to one of its Informants.

In 2010, the Securities and Exchange Commission created a program which is dedicated to protecting its whistleblowers. The plan was formed under the Dodd-Frank Act, and it has various incentives that encourage informants to offer intelligence to the SEC. The regulations of the program demand that the whistleblower should receive approximately 10 to 30 percent of the sanctions that are collected by the commission. The program also offers job protection to the whistleblowers, and it safeguards them from being harassed by their employers. The SEC recently offered a reward of $17 million to an informant who was represented by Labaton Sucharow Law Company. This amount was the second highest that has ever been given by the commission.

The SEC used the Whistleblower’s intelligence in unveiling how one of the frontrunner companies in the financial sector was breaking the state and federal securities laws. According to the SEC, it is crucial for the whistleblower to keep his or her identity a secret since it assists in preventing harassment or blacklisting from the employers. The informant hired the services of Labaton Sucharow, and therefore, his identity was not disclosed to anyone. Attorney-client privilege is used in protecting the information that the whistleblower offers. The SEC whistleblower attorneys of the firm is headed by Jordan A. Thomas who formerly worked for the SEC as an assistant director. He is highly knowledgeable on securities laws since he participated in the creation of the whistleblower protection laws.

The SEC has always been working to ensure that employees of companies are motivated to inform it on any fraudulent undertakings of their employers. The commission has an Investor Protection Fund that was created by the Congress, and its purpose is to ensure that the whistleblowers get their rewards in time. The fund has $400 million, and it is regularly replenished. The SEC has translators who help foreigners who cannot communicate in English. It also assures the sources that the attorney-client privilege protects the intelligence that they will provide.

Labaton Sucharow Law Company started about five decades ago. It has advanced gradually, and in 2010, it established a whistleblower representation service to offer legal services to people who volunteer to provide intelligence to the SEC. The firm was the first provider of the service in the industry. It is recognized for providing exceptional representation to plaintiffs, and it has been named by the Chambers and Partners, Legal 500 and the Benchmark Litigation.