SEC Whistle-Blower Program Is Starting To Pay Off
August 23, 2012
Jordan A. Thomas predicts that the "full tidal wave" of whistleblower cases will begin to surface in about four to five years from now
"The full tidal wave of cases is more likely to be in year four, five -- that's when you'll see the full effect," said Jordan Thomas, a whistle-blowers' attorney at law firm Labaton Sucharow in New York.
Thomas, who helped set up the program before leaving the SEC, said it could "revolutionize" securities enforcement. Wall Street's cops need good intelligence, he said, and insiders can put investigators on the right paper trail or provide firsthand witness accounts of wrongdoing.
Even senior executives have divulged internal secrets, their attorneys said. Many want to keep their jobs but have suffered retaliation after coming forward.
"They like their life, but they know something that they can't pretend they don't know," Thomas said. Behind his desk hang posters from classic whistle-blower movies: "The Insider" and "All the President's Men."