A Record SEC Whistleblower Reward Is Given Out

Behind the closed doors in the financial industry, a great many things are done without the oversight of the public. Do not assume this automatically makes hedge funds and brokerage houses inherently evil. No business allows its internal workings to be known to the public. The financial sector, however, is in a unique position due to the rules, laws, and regulations intended to keep the industry from harming the public. The laws also protect businesses and corporations that could be harmed by one enterprises illicit acts.

As such, when people do not know what is occurring behind the scenes, they may not learn about the illegal actions being conducted. This is where whistleblowers could and should step forward. An honest person who becomes tired of being surrounded by corruption can do a lot of good by pulling away the proverbial curtain. The whistleblower also has the potential to earn a massive reward for performing such a duty.

The rewards for turning in a violator of the law to the Securities Exchange Commission (SEC) could pay millions in reward money. SEC whistleblower lawyer Jordan Thomas recently represented a client who has received an impressive award from the government. Actually, impressive is an understatement. The amount awarded was the second largest in SEC — and U.S. government — history.

The amount of money awarded to the whistleblower is a shocking $17 million. The firm representing the client is Labaton Sucharow LLP, a law firm that specializes in whistleblower cases.

The answers to those wondering how such a huge award could be given to a whistleblower should examine the highlights of the Dodd-Frank Financial Reform Act. In the legislation, a whistleblower may be awarded 10% to 30% of any SEC sanctions paid by the violator. In essence, the fine paid by the entity committing an illegal act goes in part to the government and in part to the whistleblower.

The legislation was written and signed into law to reform the financial industry. The scope of the law was quite vast and affects the financial markets on many levels. Whistleblower protections and rewards are part of the legislation. Those who may be concerned about repercussions can take solace in the notion the law provides reasonable protections.

Seeking help from a SEC whistleblower attorney is advised for those concerned about any fallout from the process. Additionally, an attorney can work towards acquiring the reward owed to the whistleblower.

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