FAQs

The Dodd-Frank Act includes provisions to protect whistleblowers who report violations of securities laws, including violations related to environmental, social, and governance (ESG) issues. Whistleblowers who report ESG fraud may be eligible for rewards under whistleblower laws such as the Dodd-Frank Act and SEC Whistleblower Program.

If you have information about a potential money laundering case, you may be eligible to file an anonymous claim. The claim should be filed with FinCEN, the Financial Crimes Enforcement Network. However, the law requires that a licensed attorney file the anonymous claim on your behalf.

The Anti-Money Laundering Act (AML Act) is a federal law in the United States that aims to prevent and combat money laundering and terrorist financing. It is part of the Bank Secrecy Act which requires financial institutions to have strict “know your customer” rules and mandates the filing of “Suspicious Activity Reports, or “SARS.”

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 Dodd-Frank Act is a major Wall Street reform law that was signed into law on July 21, 2010, which provides whistleblowers with protections and rewards under the IRS, SEC or CFTC whistleblower programs, among others. If you are a Dodd Frank whistleblower, keep reading to learn how to proceed with your case.

Qui tam is a provisions of the False Claims Act (FCA) allowing whistleblowers to report fraud on behalf of the US government and receive a share of the recovered funds. Fraud includes abuse of disaster relief loans, over billing, kickbacks, false statements, and upcoding in healthcare, among many others.

The SEC whistleblower law requires that the SEC to pay a qualified whistleblower, who provides original information to the SEC regarding a violation of any of the securities laws enforced by the SEC and/or a violation of the Foreign Corrupt Practices Act, a financial reward.

Anyone can qualify as a whistleblower under the CFTC Whistleblower Program. Some of the types of fraud covered are spoofing, violations of the Bank Secrecy Act, insider trading, corrupt practices, and virtual currency fraud.

The IRS Whistleblower Program is one of the strongest anti-fraud award programs available to whistleblowers who report tax evasion and fraud. Congress required the IRS to establish the IRS Whistleblower Office to pay rewards whistleblowers who report specific and credible information to the IRS and if the information results in the collection of taxes, penalties, interest or other amounts from the noncompliant taxpayer.

The Foreign Corrupt Practices Act (FCPA) is a U.S. law that prohibits the payment of anything of value to foreign government officials in order to obtain a business advantage. The FCPA also requires publicly traded corporations to make and keep accurate books and records.

The purpose of the FCA is to incentivize citizens to help the federal government police rampant military contracting fraud during the U.S. Civil War. The original law went mostly unused until 1986 when the U.S. Congress modernized its procedures and approved significant amendments.

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.

Reporting someone to the IRS is a multistep process which requires careful planning. The IRS are interested in cases where there is specific and credible information resulting in the collection of taxes, interest, penalties and other amounts from a negligent taxpayer exceeding $200,000 for an individual, and $2 million from an organization.

The largest misconception concerning the IRS whistleblower program is that it only covers tax frauds. The IRS whistleblower law covers tax frauds, non-criminal underpayment of taxes, noncriminal tax frauds and sanctions paid for IRS-related infractions.

An SEC whistleblower is a person who provides the SEC Office of the Whistleblower with original, timely and credible information regarding a violation of federal securities laws. Such violations include ponzi schemes, pyramid schemes, high-yield investment programs, theft or misuse of funds or securities, insider trading and many other forms of financial frauds.

Cryptocurrency fraud whistleblowers who report alleged violations to regulators, such as market manipulation, money laundering, tax avoidance, or other scams (through the guise of crypto), can earn awards under various federal whistleblower reward programs.

The SEC Whistleblower Program implements the law’s requirement that the Commission pay whistleblowers, including anonymous SEC whistleblowers whose original information results in a sanction of $1 million or more a monetary reward.

As part of the Dodd-Frank Act, the U.S. Commodity Futures Trading Commission (“CFTC”) pay anonymous CFTC whistleblowers a monetary reward to those with original information resulting in a sanction of $1 million or more.

As part of the Dodd-Frank Act, the U.S. Commodity Futures Trading Commission (“CFTC”) pay anonymous CFTC whistleblowers a monetary reward to those with original information resulting in a sanction of $1 million or more.

The Commodity Exchange Act’s whistleblower law requires that the CFTC pay an award to qualified whistleblowers. To qualify a whistleblower must provide original information to the CFTC regarding a violation of any of the commodity exchange laws enforced by the CFTC.

In False Claims Act (“FCA”) cases, the person who brings the False Claims Act claim against the company or individual who commits fraud is called a qui tam relator.

Qui tam is a lawsuit that allows persons and entities with evidence of fraud against federal programs or government contracts to sue the wrongdoer on behalf of the United States Government.

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.

Under the IRS Whistleblower Program, U.S. whistleblowers who provide information about offshore tax havens that lead to the recovery of taxes, penalties, and interest may be eligible for a reward.

FinCEN is the Financial Crimes Enforcement Network, which is a bureau of the U.S. Department of the Treasury. It is responsible for implementing and enforcing regulations that are designed to prevent money laundering, financing of terrorism, and other financial crimes.

Foreign bribery is the act of offering, promising, giving, or accepting a bribe to a foreign official, political party, or candidate for public office to influence the recipient's actions or decisions to obtain or retain business or to secure an improper advantage. Foreign bribery is also known as transnational bribery or international bribery.

Accounting fraud occurs when a company intentionally manipulates its financial statements to create a false impression of strong financial health. Insiders who bring information about accounting fraud to the SEC, CFTC, or the IRS may be eligible for a whistleblower reward.

Abusive naked short selling refers to the practice of selling securities without first ensuring that the necessary shares are available for delivery. This can be done through various means, such as failing to deliver shares within the required time frame or using fraudulent means to create the appearance of shares being available for delivery.

Market manipulation is a type of activity that is carried out by individuals or groups in an attempt to interfere with the normal operation of financial markets, and whistleblower awards are available for reporting market manipulation.

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.

Insider trading is a violation of the Securities Exchange Act. Thus, individuals who have strong evidence of illegal insider trading can report their concerns to the SEC. Regardless of citizenship, any individual or group of individuals can participate in the SEC whistleblower program, possibly earning significant SEC whistleblower awards.

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.

A qui tam action filed under the False Claims Act is the method to report off-label drug marketing. Qui tam lawsuits are filed by an attorney, in camera, or under “seal.” The contents of the action are kept confidential under seal until the court lifts it.

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.

Filing a reward claim based on AML violations is extremely complex, as there are at least three reward laws that may be applicable to the claim, and each has separate filing rules. Continue reading to get a short and concise overview of the filing process.

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.

The Whistleblower Protection Act (WPA) and the Inspector General Act both permit employees to confidentially disclose allegations of wrongdoing to the appropriate authorities, including to Congress.

Several federal laws permit federal employees to submit disclosures regarding violations of law or abuses of authority committed by the President of the United States or other presidential appointees.

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.

Healthcare whistleblowers who witness fraud and corruption can file award claims under the qui tam provisions of the False Claims Act.

Medicare Fraud and Medicaid Fraud mean a health care provider – i.e., a pharmaceutical company (or Big Pharma), doctor, dentist, hospital, hospice care provider or nursing home – makes or causes a fraudulent reimbursement to claim to Medicare, Medicaid or other government health program such as Tricare.

COVID-19 whistleblowers are covered by the qui tam provisions of the False Claims Act. This law is applicable due to the billions of dollars in federal funding allocated to fight the COVID-19, and the federal spending on health programs such as Medicaid and Medicare.

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.

Upcoding occurs when a health care provider seeks reimbursement using a fraudulent CPT code that provides a higher reimbursement than the CPT code which corresponds to the services actually rendered to a Medicaid or Medicare patient.

Recently the SEC amended its current rules governing the Dodd-Frank Act whistleblower law, which now requires the Commission to pay rewards in the range of 10% to 30% of any “sanctions” obtained by the SEC in administrative, civil or criminal enforcement proceedings.

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.

Money laundering is the process of taking large amounts of illegally obtained funds and making their source seem legitimate. Money earned through criminal activity is considered “dirty,” and through money laundering it becomes “clean.” Once cleaned, the money can be used without being traced back to the criminal activities it originated from.

In March 2019, the CFTC issued an Enforcement Advisory indicating that, for the first time, it would be focusing investigative resources on foreign corruption as it relates to violations of the Commodity Exchange Act. As an activity regulated by the CFTC, commodities-related foreign corruption now falls within the gambit of violations for which a whistleblower may be eligible for an award should their tip lead to a successful enforcement action.

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.

Congress passed the Sarbanes-Oxley Act (“SOX”) to address significant securities and accounting frauds that triggered the collapse of two multibillion dollar publicly traded companies, ENRON and WORLDCOM, in 2001-02.