Whistleblower Lawyer Says SEC Pulled ‘Switcheroo’ in Payout Reduction Rule

In an article published by Reuters, Whistleblower Practice Chair Jordan A. Thomas’ role in the development of the SEC Whistleblower Program, his high-profile cases, and the grounds for his lawsuit against the SEC are discussed.

The article notes the origins of the SEC Whistleblower Program, the monetary awards offered by the program and that it “has doled out $560 million to 107 individuals.”

It reports on Jordan’s lawsuit which seeks to “invalidate a recent rule that would let the agency lower whistleblower payouts it deems too large.” In particular, the fact that the “agency pulled a last-minute ‘switcheroo,’ substituting a publicly proposed rule that would have allowed the agency to decrease future awards to one that applied retroactively, among other changes.”

Jordan describes this as then-Chairman Jay Clayton’s “last favor to Wall Street.” He also is quoted saying that “Gary Gensler (the former CFTC Chairman and anticipated next SEC Chairman) made his name aggressively policing Wall Street, but thanks to Chairman Clayton’s parting gift, he is going to find it harder than last time.”