International Whistleblowers: U.S. Tax Laws & the FCPA
On February 28, the National Whistleblower Center (“NWC”) requested that the Prime Minister of the Republic of Malta and the Group of States Against Corruption (“GRECO”) take immediate action regarding the whistleblower Valery Atanasov. Mr. Atanasov reported serious IT irregularities in Malta’s online gambling system to his employer, the Malta Gaming Authority (“MGA”), that could be used to enable financial crimes such as money laundering. Yet after reporting to MGA, Mr. Atanasov was formally disciplined, suspended with a significant salary reduction, and subsequently fired from his job. He was then reported to law enforcement and subjected to questioning. MGA is now suing Mr. Atanasov for defamation. NWC expressed concerned that the retaliation and lawsuit against Mr. Atanasov threatened Malta’s rule of law.
NWC was also troubled that GRECO has not properly monitored the case. “Without strong oversight from GRECO, whistleblower laws in Europe will never be effective,” said Stephen M. Kohn, Executive Director for NWC and founding partner at Kohn, Kohn & Colapinto (“KKC”). “GRECO must act to ensure that whistleblowers such as Mr. Atanasov are not subjected to any retaliation.” Moreover, NWC reminded GRECO and the Prime Minister that non-U.S. citizens may utilize U.S. whistleblower laws to file confidential complaints with the U.S. Securities and Exchange Commission (“SEC”) and/or the U.S. Internal Revenue Service (“IRS”).
Using these strong whistleblower provisions in U.S. tax law and the FCPA, KKC has represented foreign nationals in dozens of countries, who have helped recover billions of dollars for the affected countries and U.S. taxpayers. The firm’s work also involves working with U.S. officials, foreign governments, and international NGOs to expand and strengthen global whistleblower rights and protections in these areas.
Kohn, Kohn & Colapinto is committed to working with international whistleblowers to combat bribery and offshore tax evasion. By utilizing IRS whistleblower provisions and the Foreign Corrupt Practices Act, KKC ensures that international whistleblowers can come forward to report such fraud and corruption without fear of reprisal like the retaliation Mr. Atanasov suffered.
Resources for International Whistleblowers:
