The US whistleblower incentives behind FIFA corruption scandal

Yesterday the world was shocked by well-documented revelations of widespread corruption and bribery within the Fédération Internationale de Football Association (FIFA). Chuck Blazer, an “insider” and a former top FIFA official, provided vital evidence relied upon by the United States in securing the indictments. The key to unlocking the FIFA scandal is the long reach of the US’ anti-bribery and corruption laws. These laws form a potent tool available to individuals regardless of nationality or citizenship and provide substantial monetary rewards. If the information leads to a recovery, the whistleblower is entitled to a financial reward of 10%-30% of the total recovery. Another critical component of the US anti-fraud program is that whistleblowers can anonymously provide information and still recover the reward.

Under the US whistleblower program, Mr. Blazer is not considered a “whistleblower.” The US anti-fraud laws state, a “whistleblower” must provide original information to the US Government. Blazer was caught during a criminal probe and pled guilty to various fraudulent acts and, to his credit, became a valuable US informant and cooperating witness.

One of the most influential whistleblowers to step forward under the US anti-fraud laws was Swiss banker, Bradley Birkenfeld. Birkenfeld came to the United States intending to expose substantial fraudulent banking practices that were the subject of speculation for years. Mr. Birkenfeld provided the United States government with original information of sufficient quality to force what was then the world’s largest bank, UBS, to admit to fraud resulting in the recovery of billions of dollars to the US treasury.

Birkenfeld participated in some of the very violations he exposed; however, he was not responsible for the planning or initiation of the fraud. Instead, he was able to expose the fraud and, most importantly, he voluntarily chose to disclose critical information before it was known to the US government. As a result, he was individually responsible for putting an end to the secret Swiss banking system in the US and recovering billions of dollars of lost tax revenue.

Mr. Birkenfeld had a comfortable life as Swiss banker, but he chose to disclose fraud under the US anti-fraud laws. Birkenfeld was awarded a check for $104 million from the United States Treasury. Mr. Birkenfeld decided not to remain anonymous, and he voluntarily disclosed his reward so that it might provide insight and incentivize others to valiantly blow the whistle.

The whistleblower anti-fraud laws are complex; it is essential that the attorney has a good understanding of the workings of the law.

The full extent of the fraud within the inner workings of FIFA remains undisclosed. What has emerged, however, is that the US anti-fraud laws are truly capable of rooting out fraud and corruption – not just within FIFA, but elsewhere around the world.

International whistleblowers need to take full advantage of the US rewards program. It is critical that individuals come forward as early as possible, and voluntarily provide the US government with original information about bribery, tax frauds, and other crimes.

To become an anonymous whistleblower an individual must work through a licensed US attorney.

However, the whistleblower anti-fraud laws are complex; it is essential that the attorney has a good understanding of the workings of the law.

Michael D. Kohn is a nationally recognized litigator focusing on whistleblower protection law specializing in Qui Tam/False Claims Act, Dodd-Frank Act SEC whistleblower claims, IRS whistleblower claims and whistleblower retaliation litigation.

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