California Whistleblower Lawyer

Our expertise extends to a range of areas including securities violations, government contracting fraud, tax evasion, and healthcare-related fraud under the California False Claims Act. We are dedicated to offering proficient legal support, navigating the intricacies of both federal and state whistleblower laws, and ensuring the protection of your rights while assisting you in the claim filing process.

Federal whistleblower laws, including those enforced by the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Anti-Money Laundering (AML) statutes, and the Internal Revenue Service (IRS), provide safeguards and rewards for reporting federal law violations. Our experienced team adeptly manages claims under these statutes and is knowledgeable in their respective award programs.

Take our client Aaron Westrick for example. Dr. Aaron Westrick was the research director for America’s largest body armor company – Second Chance Body Armor – and was the first official to oppose the sale of bulletproof vests made with Zylon fiber. His False Claims Act lawsuit against the manufacturers of these defective vests forced them off the market, which in turn saved police officers’ lives.

On March 15, 2018, the Japanese manufacturer of Zylon, agreed to pay the United States $66 million to resolve the allegations of False Claims Act violations against it. And on July 16, 2018, the former Second Chance president and CEO agreed to pay the government $125,000 to settle claims related to the False Claims Act suit filed against Second Chance.

Although Westrick lost his career in the body armor industry, he was able to obtain his whistleblower reward from Toyobo, the Second Chance bankruptcy, and other smaller settlements, including one under the California False Claims Actas well as under the federal False Claims Act qui tam reward law.

Many statutes provide safeguards and rewards for whistleblowers, yet certain laws are notable for their considerable incentive offerings. These specific legislations not only ensure whistleblower security but also grant substantial monetary rewards to individuals who bravely disclose crucial information. In the following section, we emphasize some of the most impactful and beneficial whistleblower laws in effect today:

SEC Whistleblower Program
Under the Dodd-Frank Act, the SEC Whistleblower Program covers securities fraud, insider trading, Ponzi schemes, accounting fraud, broker-dealer misconduct, and Foreign Corrupt Practices Act (FCPA) violations. Whistleblowers receive 10–30% of sanctions exceeding $1 million. The SEC maintains full anonymity for all reporting individuals.

CFTC Whistleblower Program
The CFTC Whistleblower Program covers fraud and manipulation in commodity markets, futures trading, swaps, and cryptocurrency — the CFTC has jurisdiction over crypto assets as commodities under the Commodity Exchange Act. Awards of 10–30% are available for tips leading to successful enforcement actions exceeding $1 million, with confidentiality and anti-retaliation protections guaranteed.

FinCEN Whistleblower Program
Created by the 2022 Anti-Money Laundering Whistleblower Improvement Act, this program covers Bank Secrecy Act violations, money laundering, and OFAC sanctions evasion. Bank employees, financial institution staff, and others with knowledge of AML compliance failures are eligible. Awards range from 10–30% of total monetary sanctions recovered.

IRS Whistleblower Program
The IRS Whistleblower Program covers tax fraud, tax evasion, offshore account concealment, abusive tax shelters, and corporate transfer pricing fraud. Awards of 15–30% are available when the IRS recovers over $2 million. The IRS Whistleblower Office was created by Congress specifically to incentivize tips from insiders.

False Claims Act: Qui Tam
The False Claims Act covers fraud against the federal government — including Medicare and Medicaid billing fraud, defense contractor fraud, government grant fraud, and false certifications in federal contracts. Whistleblowers, known as qui tam relators, can earn 15–30% of recovered funds. The statute has returned over $7.3 billion to the government since 1986.

Each state has unique regulations for state qui tam whistleblower reward cases. The federal False Claims Act amendment facilitates the inclusion of California claims in related federal qui tam lawsuits.

Apart from filing requirements, the California False Claims Act closely mirrors the federal law, covering spending by California state and local governments and offering additional whistleblower-friendly features.

Distinct from the federal False Claims Act, the California statute holds a “beneficiary” of an inadvertently submitted false claim accountable. This expands the scope of liability under the law significantly.

Liability under the California law arises when:

“A beneficiary of an inadvertent submission of a false claim, upon discovering the claim’s falsity, fails to disclose it to the state or political subdivision within a reasonable period after discovery.”

Moreover, the California False Claims Act explicitly defines “deliberate ignorance of the truth or falsity” of a claim as sufficient to constitute “knowing” fraud.

Persons submitting fraudulent claims face liability for triple the damages incurred by the State of California, ranging from $5,500 – $11,000 per claim (as of August 20, 2020), excluding legal fees, and now exceeding $20,000 per false claim due to inflation adjustments.

Whistleblowers with original information leading to sanctions under California’s False Claims Act can file a qui tam lawsuit for protection and potential rewards. Successful whistleblowers in such cases may receive 15% to 30% of the government’s recovery.

If you’re uncertain about your case, contact our California whistleblower attorneys for a confidential, free case evaluation. If Kohn, Kohn & Colapinto take your case, a founding partner will oversee it.

Federal and California State whistleblower laws empower employees to halt, report, or testify against their employer’s illegal, unhealthy, or unethical practices in violation of public policies, without fear of retaliation.

Kohn, Kohn & Colapinto have set precedents to prevent companies from using settlement agreements to discourage employees from reporting fraud to government regulators. Our whistleblower lawyers have championed key reforms strengthening corporate employee whistleblower protections, incorporated into the Dodd-Frank and Sarbanes-Oxley Act.

Opting for a California-based attorney for federal whistleblower cases provides the benefit of local expertise and national scope. However, the key is specialized knowledge, given the complexity of federal and state whistleblower cases.

Our firm offers a deep understanding of federal whistleblower laws combined with the nuanced knowledge of state-specific regulations. If you’re contemplating blowing the whistle on federal or state violations, our team is prepared to assist.

Contact us for a private consultation to discuss your situation under federal and state whistleblower laws. We are dedicated to safeguarding your rights and achieving the best possible outcome for your case.