SEC Whistleblower Attorneys Are Using The Dodd-Frank Act To Protect Whistleblowers

In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted by congress. This enactment is considered an overhaul of the financial regulations in the United States since the Great Depression.

One of the many reforms that was established by the Dodd-Frank Act is a new whistleblower program. Through the program, whistleblowers can be provided with significant financial incentives and employment protections. This way, they can report violations made by an individual on the federal securities laws. The report is made to the Securities and Exchange Commission (SEC).

Responding to the historic legislation, different firms started looking for ways of protecting SEC whistleblowers. Lubaton Sucharow became the first law firm in the United States to devise a practice and program that exclusively focuses on protecting and supporting SEC whistleblowers. The firm has been building on its leading securities litigation platform. To this end, its whistleblower Representation Practice is enhanced through in-house financial analysts, investigators and forensic accountants. These professionals have expansive experience on federal and state law that is necessary to provide unrivaled representation for whistleblowers.

Jordan A. Thomas is the brain behind the practice. He is the former assistant chief litigation counsel and assistant director at SEC’s division of enforcement.  Under the program, an eligible whistleblower is entitled between 10% and 30% of the collected monetary sanctions by the SEC. This percentage is based on the successful action against a sanction exceeding $1 million. If this threshold is met, a whistleblower is able to receive additional awards that are calculated based on the monetary sanctions collected in relation to the actions reported by different law enforcement and regulatory organizations.

Employers are prohibited by the Dodd-Frank Act from retaliating against whistleblowers that, pursuant to the program rules, report to the SEC. Through an attorney, SEC whistleblowers can anonymously report possible security violations. Courtesy of the attorney-client privilege, information about whistleblowers remains confidential and protected. International whistleblowers have access to translation services.

All case evaluations are confidential and free. After answering various questions, whistleblower attorneys are able to start evaluating whether there was a violation of the federal securities laws. In the initial consultation, whistleblowers are discouraged from providing their personal information that may reveal their identity. In addition, they should not reveal the names of the security violators.