The Dodd-Frank Wall Street Reform and Consumer Protection Act, was passed in 2010. This was the most dramatic change in banking regulations since the Great Depression. This act established a whistleblower protection program. The Dodd-Frank act provides financial incentives and employment protection for individuals who report federal securities fraud.
Labaton Sucharow was the first law office to specialize in defending federal whistleblowers. The law office uses a group of attorneys, financial planners, investigators, and accountants to provide exceptional legal representation for all whistleblowers. Jordan A. Thomas is the one responsible for establishing this exceptional team. Jordan A. Thomas was the former deputy director and assistant chief litigation counsel at the Securities and Exchange Commission. He proposed the rules and legislation, that now compose the whistleblower protection part of the Dodd-Frank Act.
Under the terms of the whistleblower act, individuals are eligible to receive from ten percent up to thirty percent of the total funds recovered when the sanctions exceed one million dollars. Based upon the amount collected, whistleblowers may be eligible for additional monetary rewards. Individuals are protected from retaliation when they participate in the whistleblower protection program. Therefore individuals will not lose their employment, when they report unscrupulous activities to the SEC. The whistleblower act helps investigators in many high profile cases. Without the vital information; the SEC would not be able to prosecute those who are guilty of high profile securities fraud. Over the last several years, the Securities and Exchange Commission has received over four thousand whistleblower complaints. If the whistleblower is represented by an attorney, they may choose to remain anonymous when they report the unscrupulous activities to the SEC.
In August of 2012 the first whistleblower payment was made in the amount of fifty thousand dollars. The Securities and Exchange Commission recently awarded a payout of over fourteen million dollars. Through the criminal prosecution in this case, the SEC regulators were able to recover investor funds totaling over one hundred million dollars. Recently the Securities and Exchange Commission paid out an award of over thirty one million dollars. This is the fourth award paid to a whistleblower living outside the United States. The recipient decided to remain anonymous, as they were represented by an attorney during the investigation.