Over the past decade, there have been many cases of investment and securities fraud that have made the news and have impacted numerous individuals throughout the world. Securities fraud is the practice of cheating, deceiving, and making fraudulent sales or purchases of stock or investment funds. It is against the law to participate in practices deemed illegal by the federal securities laws, as determined by the U.S. Security and Exchange Commission (SEC). People who break these laws can suffer severe consequences including significant financial fees as well as lengthy federal prison stays, if convicted. Prior to 2010, the SEC Whistleblower Program was ineffective, likely because there were not enough protections to potential witnesses (whistleblowers), if they came forward. This allowed fraud to go undetected and negatively impacted many individuals and corporations.
In 2010, the president signed the new reforms, Dodd-Frank Wall Street Reform and Consumer Protection Act, into effect to allow witnesses to come forward without penalties or retaliation and can compensates them for their honesty by offering them a portion of the sanctions collected as a result of their courage. A benefit of the reform allows a person to remain anonymous throughout the process, if they work through an attorney. This offers the witness added protections from harm or from retaliation through the employer. The new reforms have encouraged many individuals from all walks of life to do what is right and report securities fraud.
Labaton Sucharow is the first law firm in the United States to dedicate its practice to representing whistleblowers and their rights, and advocates for them to receive fair treatment and protection throughout the process. Former Assistant Director and Assistant Chief Litigation Counsel in the Division of Enforcement at the SEC, Jordan A. Thomas leads the practice. Thomas played a leading role in the development of the SEC Whistleblower Program. He also participated in the drafting and implementation of the legislation and rules outlined in the reforms.
Labaton Sucharow employs a variety of experts in the various stages of securities litigation. They are able to perform their own in-house review and investigation with a team that includes forensic accountants with law enforcement experience. These specialists are familiar with the most advanced investigative methods to help build a successful case. They have the experience and ability to best represent whistleblowers, including those who may be liable for their actions in relation to the fraudulent claim.