Whistleblowers save a lot of innocent people from suffering a great deal of unfortunate calamities. Financial calamities are among them. Hardworking people who put their money into hedge funds and other investment vehicles do not want to be ripped off. Yet, the news are filled far too frequently with tales of fiscal crooks robbing from those who entrusted them. Even corporations have been robbed by analysts and investment bankers whom the corporate board entered into good faith agreements with.
The sad reality here is the cloistered environment of the financial world means no one on the outside knows what may be occurring. Therefore, the Securities Exchange Commission and other legal entities are reliant on word from the inside to cast light on wrongdoing. This is where whistleblowers and their attorneys prove so helpful. By alerting the Securities Exchange Commission to illegal activities, whistleblowers help the SEC stop such things. In addition, the SEC could very well award a hugely generous sum to the whistleblower. With the proper representation of a SEC whistleblower lawyer, getting the reward may become a more streamlined process. The process is also a legal one derived from the Dodd-Frank Financial Reform Bill passed by congress several years ago.
And the legal world of SEC whistleblowing is quite active. Labaton Sucharow is a law firm that reveals just how active things are. The firm only handles whistleblower cases and was the first to exclusively do so.
What did Dodd-Frank do for potential whistleblowers? There are a number of items in the law that greatly assist potential whistleblowers. Protections were put in place in the law. Legal protections may be the most important item in the legislation since these regulations make potential whistleblowers less fearful of coming forward. There is one item, however, that would probably motivate a whistleblower the most. This would be the reward clause in the legislation.
The law stipulates a whistleblower may collect 10% to 30% of recovered sanctions in excess of $1 million. Hence, a company that is fined $5 million could lead to a whistleblower receiving $500,000 to $1.5 million. Generous sums to be sure.
Blowing the whistle on a financial operation that is running below board is a complex endeavor. To deal with the situation properly, working with a SEC whistleblower attorney might be the best plan.