The SEC Whistleblower Program that was incepted in 2010 came as part of the amendments that were done to the Consumer Protection Act. The program was designed to make it easier for the SEC to fight cases of securities laws violations and in the past five years it has recorded a lot of progress. Some of the things that came in to furnish the SEC to allow more reports from whistleblowers include having a seamless infrastructure that allows whistleblowers to send their reports from any part of the world.
While reporting, whistleblowers also enjoy the right to keep their identities hidden. Before the SEC Whistleblower Program was put in place, people would keep vital information for fear of victimization because there were no protective measures to secure them from the public eye. With new rules and capabilities of reporting, more whistleblowers have come out with information about violations in different industries.
The reward system that is also implemented by the SEC Whistleblower Program motivates more people to present the facts they have about cases of securities violations. More than 400 million has been paid to whistleblowers in rewards and the SEC confirmed that they still have a lot of money in their reserves to reward those with the right details about violations that are propagated in various industries.
Labaton Sucharow and contribution to SEC cases
In the wake of the establishment of the SEC Whistleblower Program, several law firms jumped into the field to work with whistleblowers by offering them the needed support to process their cases. One of the law firms in this regard and the first to venture in the field is Labaton Sucharow, which has been working with whistleblowers to make it easier for them to handle their cases.
Labaton Sucharow offers the whistleblower support through a registered SEC Whistleblower lawyer. The lawyer takes up the details and examines the contents of the case before issuing an opinion regarding the direction of the case. Another SEC Whistleblower attorney works with the whistleblower to ensure the details presented are factual and would not amount to defamation.
According to the laws that govern the SEC, all information shared by whistleblowers should be factual and at no point should fabricated information be passed as useful data. In the event a whistleblower is found to have deliberately fabricated information, the SEC can take legal action against the individual. That is why Labaton Sucharow seeks to help whistleblowers so they can avoid such pitfalls.