Wall Street Moles Go to New York's Top Cop, Spurning SEC Cash
October 7, 2014
Jordan A. Thomas comments on whistleblowers turning to the Attorney General's office instead of the SEC
In discussing a recent trend in why whistleblowers, whose desire for quick results when taking tips or complaints to the SEC, were approaching the New York Attorney General, Labaton Sucharow partner Jordan A. Thomas said, "The SEC receives thousands of whistleblower tips every year, which they can only investigate a fraction of." At the same time, he added, "an individual investigation can take years to complete due to the sheer amount of discovery that is required to successfully put a case together."
Thomas, the former SEC enforcement attorney, warns that monetary reward isn't the only thing motivating informants. "Some just want to right what they see as a wrong," he said. "Others feel unfairly retaliated against, which drives them to report wrongdoing to the various regulators and law-enforcement groups."