Due to the complexity of securities violations, the Congress convened in 2010 and amended the Dodd-Frank Consumer Protection Act to include additional protection and capabilities for whistleblowers. Initially, there were barriers that would make it difficult for one to defy borders while reporting violations, but with the formation of the SEC Whistleblower Program, it is now allowed to report violations regardless of your location. This will help to nab companies that operate globally and have outlets in many countries. http://www.secwhistlebloweradvocate.com/program/program-overview
Labaton Sucharow LLP is among law firms that have been allowed to work with whistleblowers to bring facts to the table. The firm has been advising whistleblowers about international reporting because each country is a different jurisdiction that must also be respected. SEC Whistleblower Attorneys reviews facts presented to come up with a conclusive judgment regarding the validity of the information. This is necessary because some individuals may resort to reporting lies so they can get rewards.
Today, whistleblowers from all walks of life and any part of the globe can contribute in the fight against securities violations. Due to the elimination of territorial barriers, the number of reports submitted has increased. By 2012, more than 10 percent of the reports received came from other jurisdictions, which proves the program is effectively streamlining the industry.
Unique and focused approach
One of the driving factors that are pushing SEC Whistleblower Attorneys is the innovation drive and the need to maintain focus on facts. Evaluating the cases involves scrutiny to first establish whether violations have occurred. This is followed by understanding the goals and objectives of the client before examining the risks that will accompany the report. Finally, SEC Whistleblower Attorneys draft disclosure strategies that keep the risk of retaliation low while maximizing the potential of monetary compensation.
Awesome rewards for insider information
Initially, the SEC Whistleblower Program rewarded whistleblowers at least 10 percent of the total sanctions collected from a company or individual, but this was revised to allow for better packages. The new packages, announced on 17th May, 2016, state that a whistleblower who shares critical insider information will be eligible to receive between $5 and $6 million, if the information is verified and truth revealed.
There is also an employment protection package that protects employees from harsh action by their employers. An employer may not demote, suspend, harass, threaten or discriminate against an employer who comes out to blow the whistle.