Whistleblowing

Whistleblowers may be eligible to receive whistleblower rewards for voluntarily providing the proper authorities with original, timely, and credible information that leads to a successful enforcement action against a fraudster. Rewards are paid as a percentage of the money recovered from a qui tam lawsuit or claim made under the IRS, SEC or CFTC whistleblower programs.

The best way to prevent retaliation is for your company not to know who you are. If they do not know who the whistleblower is, it is hard to retaliate. The most effective strategy is to be an anonymous and confidential whistleblower.

There is no uniform definition of a whistleblower. However, the definition commonly used includes someone whose loyalty is to the truth, becomes an informant to the government on corporate crimes, or seeks monetary rewards under various whistleblower programs.

Under specific U.S. laws, both citizens and foreign nationals can qualify for financial rewards as whistleblowers if they disclose violations that result in the U.S. obtaining sanctions from the wrongdoer.

Whistleblowing has proven to be the single most effective tool in the detection of waste, fraud, and abuse in the public and private sectors. Public statements by responsible law enforcement officials, regulators, Congressional leaders, and independent experts confirm its effectiveness.

Many whistleblowers are completely surprised by their superiors lack of corrective oversight when they blow the whistle. And most are unaware of the laws that protect them. It is important for whistleblowers to first evaluate the risk of reporting fraud or misconduct, and to spend time understanding their rights before taking action, as retaliation is the most likely outcome.

IRS whistleblowers are individuals who report tax problems in their workplace, tax misconduct committed by individuals, and anywhere else frauds might be encountered. Whistleblowers who witness corporate fraud, tax evasion and other crimes related to the Internal Revenue Service can earn financial rewards for providing the IRS with original evidence.

By hiring an FCA attorney, a PPP loan fraud whistleblower may file a qui tam lawsuit against the fraudster on behalf of the U.S. government. In successful qui tam suits, PPP loan fraud whistleblowers are entitled between 15 and 30 percent of the funds recovered.

Those who report a freeriding violation to the SEC may become eligible for rewards paid by the Office of the Whistleblower. The sanctions ordered by the SEC must exceed $1M. More than one may qualify. Whistleblowers do not need to be employees or U.S citizens.

Microcap stock fraud occurs when microcap companies engage in market manipulation. Microcap stock frauds aim to sell or “swindle” unwitting investors into buying what seems to be legitimate stock. Microcap insiders who know of microcap stock fraud can report their concerns to the Securities and Exchange Commission (SEC) and file for a whistleblower reward.

Under the U.S. Treasury Department, the purpose of the Kleptocracy Asset Recovery Rewards Program is to combat foreign government corruption, and to recover stolen assets or forfeit proceeds.

Passed in 1980 and enforced by the United States Coast Guard and the U.S Environmental Protection Agency, The Act to Prevent Pollution from Ships (APPS) makes it a crime to violate certain provisions of MARPOL.

A reverse False Claims Act lawsuit alleges a wrongdoer has prevented the collection of money owed to the government, such as failure to return an overpayment or unused funding to the government. Other examples include applying for a lease, loan, or permit but intentionally making incorrect statements on the application.

In addition to establishing a whistleblower award program for the U.S. Securities and Exchange Commission (SEC), the 2010 Dodd-Frank Act greatly expanded anti-retaliation protections for individuals blowing the whistle on securities law violations.

The Ponzi Scheme is initiated when one schemer collects investments from multiple “investors” below them. In order to pay back those investors, the main schemer must come up with new funds, which cannot be actual returns as there is no business taking place. Instead, the head schemer fabricates “returns” by gaining new investors and using their investments to pay those who invested before them.

In addition to establishing a whistleblower award program for the U.S. Securities and Exchange Commission (SEC), the 2010 Dodd-Frank Act greatly expanded anti-retaliation protections for individuals blowing the whistle on securities law violations.

Blowing the whistle is serious business. Your job, reputation, and career may be on the line. Your first priority should be to find a whistleblower lawyer, because not all whistleblower disclosures are lawful or protected. Moreover, many whistleblower laws permit you to obtain a financial reward.

If you are facing whistleblower retaliation as a result of whistleblowing, immediately obtain legal counsel from a whistleblower attorney. The reason is simple – what you blow the whistle on and the method you use to make your disclosure will determine your rights going forward.

You should not make any disclosures to your supervisor or company compliance office until after you consult a whistleblower attorney. There is a well-established history of employees suffering retaliation after disclosing internally.

The U.S. government and a variety of offices publish FAQs for whistleblowers. These can be helpful, but they do not have the force and effect of law. No court or agency is required to follow a government whistleblower FAQ.

Section 11(c) protects workers who file complaints concerning unsafe working conditions. It also makes it an employer’s duty to ensure the organization is providing protective masks for hospital employees.

Each law has different filing procedures, and you must be very careful to follow the mandatory rules governing each program. You must also act quickly as many retaliation cases have short deadlines and are quickly thrown out if the proper procedures are not followed or a deadline is missed.

As a state or municipal police officer, you have two types of protection from retaliation for blowing the whistle on misconduct in your department: The First Amendment and your state’s whistleblower laws.

Any person can file a FOIA request, including U.S. citizens, foreign nationals, organizations, universities, businesses, and state and local governments. If you are a federal employee, it is imperative for you to not use government time or equipment when filing a FOIA request.

Numerous federal laws prohibiting private companies from firing whistleblowers require employees to file their initial complaint with the U.S. Department of Labor (“DOL”), not in federal court.

The Lacey Act protects both plants and wildlife by creating penalties for violations, such as the illegal cultivation, buying, selling, possession, or trading of wildlife, fish, or plants. The Act also prohibits falsifying documents for the shipment of wildlife, which is a criminal penalty. Also, it prohibits the failure to mark wildlife shipments, which is a civil penalty.

The Whistleblower Protection Act of 1989 is a law that protects U.S. federal government employees who disclose information they reasonably believe points to a violation of the law. The Whistleblower Protection Act prohibits U.S. government agencies from retaliating against federal employees for their disclosures.

Kickbacks often play a crucial role in fraud schemes designed to swindle taxpayer dollars from the United States Government. It is a general term used to describe the corrupt practice where illegal payments are made to garner preferential treatment and can be thought about as a form of bribery.

The Fraud Triangle is a tool used by anti-fraud professionals to identify conditions that could motivate individuals, corporations, or even entire industries to engage in fraudulent activity. It is comprised of three risk factors, (1) motivation, (2) opportunity, and (3) rationalization.