Jordan A. Thomas comments on client who reported securities violations that led to $267 million SEC enforcement action
Jordan A. Thomas spoke to various media, including The New York Times Dealbook, about the Firm's whistleblower client who tipped the Securities and Exchange Commission (SEC) about JPMorgan’s illegal mutual fund sales to private banking clients. This could potentially lead to the biggest payout to date by the whistleblower program set up by the Dodd-Frank Act.
According to Thomas, “My client never wanted to be a whistleblower, but believed the best way to protect JPMorgan clients and improve the sales culture of the organization — while avoiding retaliation and blacklisting — was to report these violations to the SEC.”
But while the SEC’s whistleblower program has drawn notice for paying out multimillion-dollar awards — including a $3 million bounty in July to a corporate insider — it also has faced criticism for letting a backlog of claims build up. To receive an award, a whistleblower has to file a notice of claim, which must be reviewed by SEC staff and then approved by the commission itself.
Thomas, who has represented other successful whistleblowers, told Law360 he is not concerned about the possible wait. “I don’t doubt that the commission is going to do the right thing for this client and other clients that will be brought before the commission,” he said.