A record sum has been awarded to an unknown-to-the-public whistleblower. A client of the law firm Labaton Sucharow has been named as recipient of the second-largest whistleblower award in United States history. The amount of the award is in the $17 million range. $17 million is an enormous amount to issue for a report on wrongdoing, and the amount likely is well-earned. Reports of wrongdoing are needed in order to put a stop to such behavior.
Without the help of whistleblowers, the financial world would be like a lawless wild west town. No order exists and rules and regulations become optional.
The Securities Exchange Commission (SEC) is tasked with overseeing a tremendous number of rules and regulations. One would think with all the laws on the books, people in the financial industry would be more honest. The penalties for violating the various laws are serious. Violations occur because they are hidden out of plain sight. Not very many people are privy to actions such as securities fraud, insider trading, bribery, and more. It is not as if those who violate such laws broadcast their actions. Since so few know what is going on, the SEC cannot act to sanction those who committed illegal actions.
This is where whistleblowers can step up and do a good service on behalf of the SEC and for their fellow citizens. The SEC points out several of the reasons why whistleblowers are so important. When illegal violations of the law occur, honest and innocent investors end up being hurt. Some may end up losing their retirement or other savings due to criminal dishonesty.
The SEC also points out, correctly, it is necessary that the public maintains a good perception of the United States’ capital markets. Assumptions that the system is corrupt or rigged does not help maintain harmony among the population.
Whistleblower protections were written into law through the famous Dodd-Frank legislation. The law also includes provisions for whistleblower rewards, rewards that might come in monumental amounts. Those wondering how they can come forward and reveal wrongdoing should discuss such things with an experienced SEC whistleblower attorney.