A whistleblower is any individual that is willing to provide information on fraud to the Security and Exchange Committee. The whistleblower may be a single person or a group of individuals that volunteer to provide information on the possible violations of the federal security laws according to the procedures outlined by SEC. The program has been revised to include whistleblowers who are not necessarily employees of the involved institution. Any individual with information about a violation that has already taken place or is about to occur is given audience by the Security and Exchange Committee. The source of information on a possible fraud can be from the whistleblower’s investigations, or through their social interactions and observations.
Protection of the information can be provided to any person regardless of their citizenship. However, not all whistleblowers qualify for awards. A few exclusions are made when it comes to granting of individuals who report violations of the federal laws. Some of the excluded parties include compliance personnel and auditors. Exceptions apply in certain cases such as when the company under investigations is engaging in activities that interfere with the investigations. The exclusions are also made to prevent possible substantial injury to the financial interest of the organization or its investors. Whistleblowers are encouraged to consult a lawyer or go through the SEC rules keenly to understand the concept of monetary awards.
Whistleblowers are provided some benefits such as protection against suspension or expulsion from their jobs. The Dodd-Frank Wall Street Reform and Consumer Protection Act forbids any employer from punishing their employees due to reporting a federal violation act to the SEC. Whistleblowers are protected by the law of retaliation as long as they believe that the report they have is related to a possible violation of the federal security laws. The act also permits whistleblowers to provide information to SEC without necessarily having to reveal their identity.
The historic legislation that focused on protecting whistleblowers from harassment and intimidation led to the development of law firms that introduced practices that exclusively focused on protecting the whistleblowers. The first law firm to launch such practice was the Labaton Sucharow Law Firm. The company’s Whistle Blower Representation Practice has a world-class team of investigators and financial analysts that provide unmatched services to whistleblowers. Jordan A. Thomas is in charge of the Whistleblower Representation Practice. Thomas is the former Director and Assistant of the Chief Litigation Counsel. He used to work for the Division of Enforcement at the Security and Exchange Committee before moving to the Whistleblower Representation Practice.
Learn more about SEC Whistleblower attorneys