NEW YORK (March 3, 2015) -– Labaton Sucharow LLP announced that it represented an anonymous whistleblower, a former company officer, who provided the Securities and Exchange Commission (SEC) with key information about a securities fraud that resulted in a precedent-setting enforcement action.
What makes this matter so unique is the fact that corporate officers are typically ineligible for SEC awards. Among other exceptions, if a company had knowledge of a possible securities violation and compliance or other responsible parties failed to act within 120 days of learning of the misconduct, a company officer may come forward. This marks the first time the SEC issued an award in such a matter.
"Most importantly, this matter shows the remarkable power of the program to embolden high-level insiders to come forward and take a stand against corporate wrongdoing," said Jordan A. Thomas, counsel for the SEC whistleblower and Chair of Labaton Sucharow's Whistleblower Practice.