One of the major changes in how security fraud was presented to the SEC was radically changes when Congress enacted the Dodd-Frank Wall Street Reform in 2010. This Consumer Protection Act is considered to be the biggest sweep of illegal activity in the financial sector since the Great Depression, and this new whistleblower program provides employment protections combined with financial incentives for employees to report violations of federal securities laws to the SEC (Securities and Exchange Commission).
When the legislation was introduced, one of the leaders in the country to take on the huge influx of complaints from employees was the law firm of Labaton Sucharow. Not only did this law firm exclusively focus on advocating for these SEC whistleblowers, they created a unique securities litigation platform that leveraged a world-class investigators, in-house financial analysts, and professional forensic accountants experienced to provide representation for these whistleblowers.
What appeals to the employees to take the risk of exposing their employers comes in the way of huge financial reward. Under the rules of the Dodd-Frank Wall Street Reform program, the Securities and Exchange Commission is required to pay all eligible whistleblowers from 10-30% of all the monetary sanctions collected due to a successful SEC enforcement action which exceeded $1 million. Once the financial threshold is met, these whistleblowers are also eligible for additional financial awards that are based upon monetary sanctions collected that are related to actions brought by other law enforcement organizations. This Dodd-Frank Act prohibits any and all retaliation considered by employers against any of these whistleblowers who have reported to the SEC pursuant to program rules.
The employers who are still conducted fraud against the security sector are now looking over their shoulders where in the past they were able to use aggressive tactics to harass employees into turning a blind eye for fear of losing their jobs. Huge financial rewards and job security make it easier for any employee to anonymously file a complaint against their employer without the stress of having to maintain a relationship with said employer. Whistleblowers can report securities violations anonymously when they are represented by a lawyer.
If employees are concerned about any issues or have evidence such fraud is taking place in their workplace, they are advised to call a fraud attorney and ask about the SEC Whistleblower Program where they can obtain a free case evaluation. During the initial consultation, employees can provide identifying information of possible securities violators anonymously.