With Sixth Payout, SEC Whistleblower Program Gains Steam
October 31, 2013
Jordan A. Thomas points out the correlation between the increased awareness of the SEC whistleblower program with an increase in tips
Plaintiffs firm Labaton Sucharow earlier this year commissioned a survey of financial industry professionals and found that 89 percent said they'd be willing to report wrongdoing to the SEC once they understood it could be done anonymously, that they were protected against retaliation and that they could receive a monetary award.
The survey also found that 60 percent of employees were aware of the whistleblower program, up from 44 percent in 2012.
The survey was done before the $14 million award on Oct. 1, which the SEC said went to a person who "provided original information and assistance that allowed the SEC to investigate an enforcement matter more quickly than otherwise would have been possible."
Since then, Labaton partner Jordan Thomas said the firm has seen "an increase in the number of consultations. It's logical – the greater the awareness, the more tips."