This incentive causes many shy types to become bold and brave and willing to go where they never would have treaded before to reveal the illegal practices that have been used on unwitting consumers of various ‘Wolf of Wallstreet,’ trading houses. Typically there are two sets of protocols that have been exposed in many of these brokerages. Before Dodd-Frank, many agents lived or died by performance guidelines that would basically fool customers into investing in various trading schemes and somehow the brokerage would make a bundle on the deceptions that were set up by these types of performance protocols. Agents who did not follow these guidelines and followed a second set of guidelines that the same house had to hide the real methods that were being pushed by the leadership in these trading offices, would eventually either fall in line to save their jobs and make more commissions, or they would eventually be pushed out.
Those who stuck around and towed the line would benefit by great commissions, however, they also would sometime begin to feel guilty about the methods that got them there. These were the agents and many others, who would step up when the Whistleblower Program, crafted by Jordan A. Thomas, a former Assistant Director and Assistant Chief Litigation Counsel in the Enforcement Side of the SEC, became active. These poor fellows who were being pressured by co-workers, supervisors and brokers-in-charge, to swallow their apprehensions and just ‘go along to get along.’
What a great new career with a short stint they could now sign up for to report these shady activities that are now against the law, to make a real payday of $1.5 to $5.1 million of an award that could be from a case that was awarded of $17 million against a large brokerage. This award is shared by the law firm who takes it to court. The SEC Whistleblower lawyer and firm will split 70% and the whistleblower will get up to 30%.