America is in reclamation, and the SEC has thus composed legislation enacted by congress. That legislation gives whistleblowers employment protection. It also gives them 10 to 30 percent of recovered sanctions exceeding one million dollars, and additional incentives based on recoveries.
America is arguably a leading economic force in the world today. There was a time when it was The leading economic force, but that time has passed, and was heralded by the 2008 financial collapse. This collapse happened because bankers were doing novations. A novation works like the transitive property in Algebra. If A is the same as B, and B is the same as C, then A is the same as C. This property is only mathematically accurate if all values are, in fact, equal. For instance: take three blocks of wood, one painted green, one red, and one blue. They’re all the same height, weight, and material. They just differ in their outward appearance–so they become interchangeable for a variety of purposes. But if you try to interchange them on basis of their color, they are no longer equal.
The transitive property is very selective, bankers prior the 2008 election were not. They’d trade sub-prime loans via novation as though they were equal to the cash they were nowhere near being worth. At the root of this were Freddie Mac and Fannie Mae. These two organizations used political sensitivity to usher in loan authorization for individuals who were not able to sustain the load in any way shape or form. Where before Freddie and Fannie there were protections, afterward there were not. That point right there is where a whistle should have been blown, because unquestionably those involved in facilitating this transitive switcheroo understood to some degree what it would mean: economic collapse. It’s the same principle as using one credit card to pay another. This works for a while, but when the bubble breaks, someone has to pay the piper. That can mean reclaiming things purchased with the card.
Jordan A. Thomas, previously working for the SEC, wrote the legislation behind Dodd-Frank. He now leads Labaton Sucharow, the first Whistleblower Representation Practice to develop after the legislation was enacted. Through this practice, whistleblowers can retain anonymity, protect their job, and receive monetary incentives for doing the right thing. http://www.secwhistlebloweradvocate.com/program/program-overview
If Dodd-Frank can help embolden whistleblowers, the fallout from 2008’s meltdown may in some part be repaired, and future implosions may be prevented. Find a SEC Whistleblower Lawyer to represent you!