Two former executives of a leading banking institution filed tips with Securities and Exchange Commission that exposed violation of the customer protection law. Jordan Thomas, SEC whistleblower lawyer at the Labaton Sucharow Whistleblower Legal Firm announced on June 23rd, 2016 the representation of the whistleblowers and monetary sanctions in both cases. The settlement happened shortly after the federal securities law enforcement agency awarded $17 million to a client who reported incriminating financial data against a company in the financial industry. The case was high profile and one of the largest monetary rewards issued to a client reporting securities violations. The month of June was a remarkable month for Labaton Sucharow LLC and their legal representatives and professionals.
A division of the banking institution agreed to pay approximately $425 million to settle charges of violating the customer protection law and jeopardizing billions of dollars of their clients’ assets. The total monetary sanctions included two separate cases accusing the institution of failing to protect customers’ securities from creditors’ claims. SEC investigators discovered the financial firm purposely used cash from their clients to generate profits. The illegal activities placed their customers in high risk over a lengthy period. Both executives are entitled to 10 percent up to 30 percent of total financial sanctions.
SEC Whistleblower Program started in 2011 after President Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. The new law provides substantial employee protections and monetary incentives for whistleblowers to report federal securities laws violations. Under the Act, employers are prohibited from retaliating against reporting employees by demoting positions, firing, aggravation and intimidation. Jordan Thomas contributed to establishing the development of the program and executing its rules and regulations. He worked on the Whistleblower Program while serving as SEC’s Assistant Director and Legal Counsel.
Jordan Thomas is Partner of Labaton Sucharow LLC and serves as Chairman of the Board. He is acknowledged as a whistleblower advocate by American Bar Association Journal and Ethisphere Institute. Their legal team are recognized nationally as Legal Rebels, Attorneys Who Matter, and Litigation Stars. The respected law firm is known as the Most Feared Plaintiffs Firms and the Top Law Firm for Plaintiffs Securities Litigation. Labaton Sucharow continues to represent whistleblowers involved in high-profile and complex cases. Visit Labaton’s SEC Whistleblower Advocate online to retrieve information about prior cases and the program.