The U.S. Securities and Exchange Commission (SEC) Whistleblower program came into existence from July 21, 2010, when the President signed the famous Dodd – Frank Wall Street Reform and Consumer Protection Act. The Act firmly introduces a whistleblower program in the Commodity Futures Trading Commission. The program gives incentives to people who are ready to submit beneficial information about the employees or actions violating the Commodity Exchange Act.
Labaton Sucharow was the first law firm in the country which seriously took the SEC whistleblower program and gave impetus to the whistleblowing program. The Whistleblower Representation Practice boasts of an excellent group of investigators, financial analysts, foreign accountants with golden experiences in federal and state law enforcement laws. The program is headed by an accomplished SEC whistleblower lawyer Jordan A. Thomas. He was the former Assistant Director and Assistant Chief Litigation Counsel in the Department of Enforcement at the SEC. He played an important role in the better proliferation of the Whistleblower Program.
According to the rules of the program, the whistleblower is given incentives by the SEC. The payment is about 10 to 30 % of the monetary sanctions as collected due to the SEC enforcement action, provided the sanction is above $1 million. If the limit is met, then the whistleblowers also receive additional benefits apart from the monetary payments.
The Dodd – Frank Act also prohibit the employers from retaliating against the whistleblowers who tip for the SEC. The Act also gives the liberty to the whistleblowers to report anonymously if represented by any trusted SEC whistleblower attorney.
Jane A Norberg became the Chief of the Office of the Whistleblower program on September 28, 2016.
The whistleblower process takes places in three phases.
First Phase: The phase also known as intake and triage is the step when the whistleblowers file complaints with the SEC. The staff of Designated Division of Enforcement review the complaint to determine whether it is eligible for further investigation. After the tip is stamped as an important one, Office of Market Intelligence triages all tips, information.
Second Phase: Office of the Whistleblower monitors the information submitted and assess the level of helpfulness of the information provided by the whistleblower. Also, the Office will determine whether added benefits are to be given to the whistleblower.
Third Phase: The whistleblower can claim for awards if his information leads to ta successful contribution to the U.S. SEC action.