Senator Grassley Endorses Kohn Kohn and Colapinto’s Concerns over Legal Department Domination of Internal Investigations
Senator Grassley has recognized the problem that arises when In-House Corporate counsel dominates the investigation of whistleblower complaints.
In his July 30th, 2014 testimony before the House Subcommittee on the Constitution and Civil Justice, the Senator endorsed Stephen Kohn‘s criticisms of the Chamber of Commerce’s proposed reforms to the False Claims Act, which would require whistleblowers to disclose their reports to their bosses before filing with the Federal Government.
Senator Grassley took strong opposition to reforms suggested by the Chamber of Commerce that would subordinate Compliance departments to In-House Legal Counsel, testifying as follows,
“As the testimony that Stephen Kohn has submitted for today’s record illustrates, corporations have already been using compliance programs as a trap for whistleblowers. By making their compliance program an arm of their legal department, anything a whistleblower reports is protected as confidential by attorney-client privilege. Back in March, the Chamber joined others in submitting a strongly worded amicus brief arguing for such confidentiality for whistleblowers who take the internal compliance route. Many corporations also require employees who provide tips to their compliance departments to then sign non-disclosure agreements. In addition to the chilling effect this has on whistleblowers contemplating filing a False Claims Act suit, any whistleblowers brave enough to file then finds themselves the subject of legal action claiming they have violated attorney-client privilege or non-disclosure agreements. Is this how we want to treat whistleblowers?”You can read related documents at the links below,
Senator Grassley’s testimony before the House Subcommittee on the Constitution and Civil Justice, (begins on page 12)
Stephen Kohn’s written testimony before the House Subcommittee on the Constitution and Civil Justice
