Jordan Thomas Testifies Before U.S. Congress on Proposals to Enhance Securities Law Enforcement

by Labaton Sucharow

June 20, 2019

Partner and SEC Whistleblower lawyer Jordan Thomas testified before a House Financial Services Committee hearing examining eight legislative proposals that are designed to bolster regulators’ enforcement tools against securities law violators.

In his testimony, Jordan expressed his concern that the investor protection status quo isn’t working, and urged Congress to provide “much needed legal relief to our financial watchdogs,” including restoring SEC’s ability to obtain full disgorgement of ill-gotten gains from wrong doers and strengthening the impact of monetary penalties by, among other things, increasing the statute of limitations for civil money penalties.

“The SEC is under resourced and they are fighting on multiple fronts an emerging, growing market and if they can’t, when they catch people, get all of their ill-gotten gains, if they can’t have significant penalties that lead to real deterrence, then [wrong doers are] going to do what economists would expect people to do, they would assess the risk of detection and the potential consequence and say ‘I’m going to take that risk,’” Jordan told the Committee.

Rep. Carolyn Maloney (D-NY) chaired the hearing, “Putting Investors First: Examining Proposals to Strengthen Enforcement Against Securities Law Violators.” In addition to Jordan, the witnesses included Urska Velikonja, Professor of Law, Georgetown University Law Center, Andrew Vollmer, Professor of Law, University of Virginia School of Law, and Stephen Crimmins, Partner, Murphy & McGonigle.

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