Jordan A. Thomas comments on Ontario Securities Commission's proposed cap on whistleblower awards
The Ontario Securities Commission is proposing to pay whistleblowers up to 15 percent of the sanctions or settlement payments in a successful case involving $1 million of sanctions or more. Payments would be capped at $1.5 million. Several experts have commented that a $1.5 million cap is inadequate to encourage senior executives with knowledge of accounting fraud, insider trading and market manipulation to come forward.
"Senior (executives) have a lot to lose," said Jordan Thomas, a lawyer with Labaton Sucharow, who recommended that the securities regulator set a minimum compensation amount.