Stephen M. Kohn, whistleblower attorney at Kohn, Kohn & Colapinto, recently wrote an article published in International Banker explaining the use of financial rewards for whistleblowers to increase bank fraud prosecutions.
The article, “Qui Tam Economic Whistleblowing: The New Paradigm for Prosecuting Bank Frauds,” was featured in the magazine’s Winter 2020 issue.
Using “qui tam,” or whistleblower reward laws, provide strong incentives for those who witness bank fraud and economic crimes to come forward with information.
The success of the qui tam provisions of the False Claims Act has led to the expansion of whistleblower reward laws into legislation such as the Foreign Corrupt Practices Act, Securities Exchange Act, Commodity Exchange Act, Internal Revenue Code.
“Who is eligible for a reward? Just about any person with original information that can prove fraud,” Kohn says. “This includes participants in fraudulent conduct. Participant coverage is perhaps the single most important feature of the qui tam laws.”