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Former SEC officials Allison Herren Lee and Andrew Feller have devoted their careers to protecting investors. Now, they are channeling that experience into Labaton Keller Sucharow’s new whistleblower representation practice.
Protecting investors also means protecting the whistleblowers who risk their reputations, their relationships and their livelihoods by exposing corporate misconduct. Lee and Feller have been prominent champions of the SEC’s Whistleblower Program for years. Lee, who served as an SEC Commissioner from 2019 to 2022 and as Acting Chair from January to April 2021, consistently advocated for whistleblower protections in policy negotiations. Feller, who served with Lee in the agency’s enforcement division and later as her counsel, shares that commitment.
For both lawyers, the move is a natural continuation of their public-service careers.
The lawyers and the firm share a clear purpose. “[Labaton’s] mission is exactly the same as what we are trying to accomplish: investor protection,” says Lee. Advocating for whistleblowers – whom Lee describes as “partners in law enforcement” – is a core tenet of that shared mission. “Whistleblowers see [fraud] in real time,” she explains. “They can stop something in its tracks and reduce the damage.”
For more than 60 years, Labaton has championed the rights of investors and consumers, earning a distinguished reputation for excellence in securities, shareholder rights, consumer protection and data privacy litigation.
“Establishing a dedicated whistleblower practice is a natural extension of our mission to protect investors, promote corporate accountability and strengthen the integrity of the financial markets,” said Eric J. Belfi, Chairman of Labaton Keller Sucharow. “Allison and Andrew have helped shape the SEC’s enforcement priorities and whistleblower framework from the inside. Combined with our decades of experience investigating complex fraud and litigating high-stakes matters, we are creating one of the nation’s premier practices for whistleblowers seeking trusted counsel and exceptional advocacy.”
Feller and Lee have worked together for nearly 20 years, though they followed very different paths to the law. Feller began his career in Silicon Valley handling capital markets work for startups before the dot-com bubble burst. He joined the SEC’s Division of Enforcement as the financial crisis unfolded. Lee earned her undergraduate degree in mineral management and began her career in the oil business as a “landman.” She later pursued her longtime goal of attending law school, including as a single mother while continuing to work. After making partner at a large Denver firm, she joined the SEC’s Division of Enforcement a few years before Feller.
Both were among the founders of the SEC’s Complex Financial Instruments Unit, working on consequential cases arising from the 2008 financial crisis. Early in his SEC tenure, Feller began investigating Citigroup in a major case involving the company’s exposure to subprime mortgage-related assets. His work also included matters involving UBS, Goldman Sachs and two Morgan Stanley retail representatives accused of taking money from an elderly client.
Lee investigated a case against JPMorgan and Credit Suisse involving the banks’ sale of residential mortgage-backed securities. The investigation resulted in the banks paying nearly half a billion dollars combined. In another matter, she prevailed on appeal multiple times in a case involving a New Mexico stockbroker and “cloak-and-dagger” bribery of the state treasurer. That work brought Lee into contact with the U.S. Attorney’s Office in Albuquerque, where she spent a year as a Special Assistant U.S. Attorney on loan from the SEC. She later served as counsel to Commissioner Kara Stein in Washington, D.C., before being appointed an SEC Commissioner and later Acting Chair, during a record-breaking year for the SEC Whistleblower Program.
Upon leaving the SEC, Lee and Feller moved together into private practice on the plaintiffs’ side – a departure from the more typical path. “It was important to both of us to find a way to continue to advance the mission of the agency,” says Feller. “That’s not intended in any way to cast aspersion on the defense bar. It’s simply what we preferred to do and a path we wanted to show people was available.”
That path has now led them to Labaton, where they are hitting the ground running with active engagements while building the practice to work synergistically with the rest of the firm. “It’s a unique moment in the history of law enforcement, when whistleblowers are more valuable than ever,” Lee says. “It’s more important than ever to provide a port in the storm for them. And that’s what we are at Labaton.”
“I could not be more thrilled,” she adds. “Every day, I become more impressed and more confident in our decision – and so pleased that Labaton wanted to build this practice with us.”
Lawdragon: Allison, as a Commissioner, you consistently voted to uphold whistleblower protections and described whistleblowers as “partners in law enforcement.” Why were whistleblowers so important to your work at the SEC, and why is it important to continue advocating for them in private practice?
Allison Herren Lee: When I call them partners in law enforcement, that is exactly what they are – at the SEC or anywhere else. Fraud, by its nature, is concealed. You usually do not discover it until the damage is done. Whistleblowers see it in real time. They can stop something in its tracks and reduce the damage.
In my view, one of the most valuable contributions whistleblowers make – no matter which side of the aisle you are on – is advancing individual accountability. It is deeply unsatisfying when serious misconduct results in charges only against a company, even when individuals were responsible. But proving the required mental state – the scienter element of a fraud case against an individual – can be difficult. That is where whistleblowers are extremely valuable. They can give investigators information about who knew what, who said what, and when. They often provide information that would otherwise be unavailable, and they provide it earlier, before all the damage has been done. They also help investigators assess liability where it frequently belongs: with the individuals.
One of the reasons I so appreciate whistleblowers is the risk they take. It is a gut-wrenching decision. Sometimes there will be a reward at the end; sometimes there will not. They do not know when they come forward, and we do not know when we take on their representation. It takes tremendous courage, and they bring tremendous value to law enforcement.
Andrew Feller: The Whistleblower Program has been enormously effective, and the numbers bear that out.
LD: The Whistleblower Program has grown significantly since you started at the SEC.
AF: Yes, as well as the expansion of similar programs across the government. I think that's a pretty clear testament to its effectiveness.
AHL: For me, representing whistleblowers in private practice aligns perfectly with my experience and, more importantly, with the SEC’s mission to protect investors. Having served both as a Commissioner and as an enforcement lawyer for many years, that mission still means a great deal to me, and it always will.
LD: How does your SEC experience shape the guidance you can provide to whistleblowers?
AF: The process is not a black box to us. We understand what happens when information reaches the agency and how the staff evaluates it. Our experience as former enforcement attorneys who also worked at the policy level allows us to take a holistic view – considering both the legal merits and the broader context. We can assess how a matter fits the agency’s priorities and resource allocation.
One of the reasons I so appreciate whistleblowers is the risk they take. It is a gut-wrenching decision.... It takes tremendous courage, and they bring tremendous value to law enforcement.
AHL: Everything Andrew said is exactly right. I have profound respect for the lawyers in the whistleblower bar, many of whom have deep expertise and have brought a great many cases. What differentiates Andrew and me is that we have seen hundreds of these matters. Enforcement cases come before the Commission for a vote every week, and we also helped shape policy. Understanding the process from the agency’s perspective is different. We know how to present a case in a way that will engage the staff and how to guide it through the rest of the Commission’s process. That is invaluable to our clients.
LD: What brought you to Labaton, what kind of practice do you intend to build, and what are you most looking forward to?
AHL: Labaton was a natural fit. It is a deeply sophisticated firm, full of outstanding securities lawyers. The team has extraordinary depth and a well-earned reputation for excellence. The culture is also genuinely welcoming.
Our mission in representing whistleblowers aligns perfectly with Labaton’s mission in securities litigation. It is another way to address the harm caused by corporate misconduct, while giving the firm’s clients a wider range of potential options. Our work can complement what the rest of the Labaton team is doing.
AF: They have been tremendously supportive and are genuinely excited to build this practice. With the backing of a sophisticated institution like Labaton, its in-house capabilities, and its depth of experience, I am looking forward to building a world-class practice here. We are also excited to collaborate with the broader Labaton team.
LD: Why is this the right moment to build a whistleblower practice?
AF: Government agencies are being asked to do more with fewer resources and, in some instances, a narrower enforcement focus. As a result, agencies increasingly rely on whistleblowers to bring forward cases that advance policy priorities and help fulfill their core missions. It is also more important than ever for whistleblowers to work with experienced counsel because the processes are becoming harder to navigate and whistleblowers face heightened scrutiny. As Allison said, people take substantial risks. They need experienced counsel to help protect them and position them to receive the rewards these programs are designed to provide.
AHL: The program is a market-driven solution. In other words, financial markets run on incentives, period, full stop. So, you would think free-market supporters would be very supportive of a market-driven solution to misconduct that ends up helping level the playing field, making it more fair for the people who play by the rules. I feel it's a strength that it taps into exactly how financial markets run. That's why it works.
There's a lot of scrutiny on whistleblowers. Having experienced counsel to navigate that is important because … people take big risks and they need to be best positioned to be protected and rewarded.
LD: You have worked closely together for years. How would you describe your working relationship?
AF: My wife and I were recently at Allison’s house in Denver, where we shared great meals and a lot of laughs. We talked about what we are building together, as well as kids, grandkids and music. It is that kind of relationship. We toasted this new chapter and reflected on the fact that, when I went to work for her in 2019, neither of us could have predicted where it would lead.
AHL: We are friends and colleagues, and the trust between us is complete. That is a real luxury.
LD: As you begin building the practice, what are your first priorities and what types of matters do you expect to handle?
AF: We will continue representing our existing clients, so we are hitting the ground running. At the same time, we are putting the pieces in place to build something viable for the long term. The funny thing about this practice is that you can be busy around the clock, and when someone asks what you are doing, you have to say, “I cannot tell you. I cannot point you to anything – but trust me, I am very busy.”
LD: What types of concerns do you expect whistleblowers to raise in the coming years, and what trends are you seeing now?
AF: The government is expanding whistleblower programs beyond the SEC model. FinCEN has proposed rules addressing money laundering and sanctions evasion. The DOJ has programs focused on antitrust and health care fraud, and the IRS program has also reported strong results. While our background is at the SEC, we expect to advocate for whistleblowers across the government because much of that experience is transferable. I have also worked with the whistleblower bar to submit comments on behalf of whistleblower groups in response to FinCEN’s rule proposals. The broader trend is clear: Whistleblowers will be important across a growing number of programs, and we hope to be positioned to assist them.
AHL: I expect a continued rise in greenwashing cases. Investors want this information, and if it is not regulated as originally anticipated under the climate rule, we are likely to see more greenwashing. Will more employees witness this conduct and report it? I believe they will. Whistleblowers will be an important source of information as law enforcement works to root out misconduct throughout the energy transition.
AF: You can also imagine a crossover between greenwashing cases and the current AI boom. Investors are keenly interested in the environmental impact of AI and data centers. Greater transparency would likely prompt many more questions.
I appreciate the chance to help protect [whistleblowers] and guide them through a frightening process. They are providing an important service, potentially at great personal cost, and we can make that process easier for them.
LD: Finally, what do you find most fulfilling about representing whistleblowers?
AHL: I appreciate the opportunity to protect whistleblowers and guide them through a daunting process. They are providing an important service, potentially at great personal cost, and we can make that process easier while protecting them and their information – and helping law enforcement. The work could not fit me better. My clients mean a great deal to me, and protecting them matters to me on a deeply personal level.
AF: I am not sure I can improve on that. I meet people with deep conviction about what they are doing, and I remain engaged with the government, which has been central to my career and is something I believe in deeply.
