How to File a Whistleblower Complaint: An Essential Guide

Whistleblowing is an act of reporting an illegal activity, such as fraud, waste, or abuse happening within a public, private, or governmental organization. It also includes reporting health and safety issues, and threats to the environment.

Whistleblowing is important to society, because it exposes wrongdoing, protects the public, increases accountability, and saves money. Whistleblowers are often the first to report their concerns, and bring issues to light, which holds organizations accountable. Because when these issues go unaddressed, they can lead to disasters, public harm, or erode the financial system. 

Becoming a whistleblower is a serious decision that requires careful consideration. It is more than just reporting concerns. Some laws permit whistleblowers to be completely confidential to obtain multimillion dollar rewards. If you are covered under one of these laws, it is a serious mistake not to become one. On the other hand, some whistleblower laws are notoriously weak and deploys using them can face retaliation, discharge, or blacklisting.

If you are considering becoming a whistleblower, continue reading our guide to learn more about how to file a whistleblower complaint. 

So you want to file a whistleblower complaint? There are some things you will need to know and do first before you decide to proceed. Below are the various next steps you can take if you are serious about coming forward to authorities with a particular concern:

1. Find the Best Law

Determine which laws protect you. There are over 65 whistleblower laws, some of them provide multimillion awards, whereas others offer you no protection at all. Determining the law that will cover you, is the singlemost important thing you will do before you make a disclosure to anyone.

We recommend, in the strongest possible way, that you obtain information about the laws available, and speak to a knowledgeable whistleblower lawyer. The risks are too great and the rewards potentially too high to undertake whistleblowing without being fully informed of the risks and benefits.

2. Be Smart

The best whistleblower laws protect confidentiality, permit you to obtain monetary awards, and contain strong anti-retaliation provisions. This is the trifecta you’re looking for. Whistleblower laws that meet this criteria cover most of the U.S. economy (public and private) and much of the international economy.

Determine whether your allegations concern violations of:

• Fraud in government contracting
• Fraud in government procurement
• Medicare or Medicaid fraud
• Tax evasion or underreporting tax liability
• Violations of the Securities Exchange Act (including violations of the rules covering ESG)
• Violations of the Commodities Exchange Act
• Violations of the Foreign Corrupt Practices Act
• Violations of the Bank Secrecy Act (including money laundering)

If your concerns cover any of these violations, you must contact a whistleblower lawyer and file your claims in accordance with the very strict rules governing these cases. Failure of following these rules can result in your disqualification, a large monetary reward, even if you are the whistleblower who is responsible for the ultimate enforcement action.

2. Avoid the Traps

Using weak laws, ignoring the risks involved, reporting to your supervisor (who may be responsible for the wrongdoing), all can lead to catastrophic results. These should be avoided at all costs. These negative results, which can often force an employee into litigating a difficult and stressful retaliation case, can include:

• Job loss: This is one of the biggest concerns for most whistleblowers. Companies may retaliate by firing you, demoting you, or making your work life difficult.
• Blacklisting: Being labeled a whistleblower can make it hard to find a new job in your industry, especially if the company you exposed is powerful.
• Career damage: Even if you do not get fired, whistleblowing can harm your reputation and limit your future career opportunities. 
• Stress and anxiety: The uncertainty and pressure of whistleblowing can be stressful. You may worry about retaliation, financial hardship, and the outcome of your actions.

4. Gather Evidence

Before filing a whistleblower complaint, you will need to lawfully collect strong and credible evidence. Evidence collecting tacts can be found in of Rules for Whistleblowers.

Strong and credible evidence might include documents, such as emails, memos, financial records, data, or contracts. Other substantial evidence could also include physical evidence, such as photos, videos, or audio recordings. 

It is also common for whistleblowers to gather witness or expert testimony, which can help explain the significance of the evidence, or how it is correlated with the wrongdoing. 

When Gathering Evidence, Keep This in Mind:

• Legality – hacking computers or stealing documents is illegal and should not be performed in any circumstances, as this will not help your case.
• Focus – the evidence should point to the wrongdoing in a clear manner. It should be apparent how the fraud, misconduct, abuse, or negligence happened. 

Before collecting evidence or filing a whistleblower complaint, we advise speaking with an attorney to understand your rights. An attorney can help you understand your rights, and the specific type of evidence that might be most helpful for your case. 

5. Talk to a Whistleblower Attorney

The potential benefits and risks of whistleblowing are far too great to pursue a case on your own. Try to hire a whistleblower lawyer. Some will work on a contingency basis (i.e., no upfront fees). If you cannot afford an attorney, invest in a 1-2 hour consultation with a whistleblower expert to determine your rights, so that you can decide whether or not to take the risk inherit in blowing the whistle.

Before contaacting an attorney, we strongly recommend that you obtain a copy of Rules for Whistleblowers. This will put you in a position to best sell your case to a competent attorney who can understand the substance of your case and the evidence.

There are other benefits of hiring a whistleblower attorney, such as: 

• Anonymity – to file a whistleblower complaint anonymously, you must have a whistleblower attorney.
• Required in False Claims Act Cases – to file a False Claims Act case, you must have a whistleblower attorney.
• Guidance – guidance on whether or not you should blow the whistle. A consultation can give you direction on whether you should blow the whistle, and what you should look for at work to build a strong case.
• Experience – whistleblower attorneys have specialized knowledge of whistleblower law. It is crucial to find one with experience winning cases related to your complaint.
• Resources – complex whistleblower cases take a ton of time and energy. Having a team behind your whistleblower complaint makes the process more effective.
• Communication – an attorney can communicate between you and other agencies and give you guidance on the best direction to take throughout the process. 

When deciding to talk to a whistleblower attorney, you should also do your research to find one that aligns with your needs, and who you feel comfortable with. Be prepared to present your case to the attorney during your initial consultation. This includes the details of your whistleblower claim, evidence collected, and any retaliation you have experienced. Reading for Rules for Whistleblowers before speaking to an attorney, can prove invaluable in putting your best foot forward in obtaining qualified legal advice.

Blowing the whistle internally means that you are reporting your concerns to your company’s compliance officer, general counsel, or someone who addresses such concerns. 

However, these folks are oftentimes put in these positions to protect the organization’s best interest – not those of the whistleblower.  

Internal reporting paints a bullseye on the whistleblowers’ back, in which they begin to experience retaliation therefore for not conforming to the organization’s culture of fraud, waste, abuse, misconduct, corruption, or lack of safety concern.  

This is generally when an “insider” decides to blow the whistle externally, becoming a whistleblower. And when this whistleblower comes forward, there are several programs that they can file a whistleblower complaint under, depending on the illegal activity they have witnessed. 

There are several whistleblower programs available to whistleblowers. Each of these programs have a unique filing procedure and requirements, which you should take into consideration.

Dodd-Frank Act (2010)

In the fight against corporate wrongdoing, whistleblowers play a crucial role. Three key pieces of legislation work together to empower them.

The Dodd-Frank Act legislation established strong incentives for whistleblowers to report violations of securities and commodities laws. It created the legal framework for the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC) whistleblower programs, ensuring financial rewards for individuals whose information leads to successful enforcement actions by these agencies. 

SEC Whistleblower Program & CFTC Whistleblower Program (Established by Dodd-Frank)

These are the specific programs that handle whistleblower complaints related to securities and commodities fraud, respectively. They offer protection from retaliation by employers, maintain confidentiality (to the extent possible), and award whistleblowers a percentage of the monetary sanctions recovered by the SEC or CFTC – incentivizing them to come forward. 

Both the SEC and CFTC have whistleblower programs under Dodd-Frank. You can file a complaint online through their respective websites: 

• SEC Whistleblower Program
• CFTC Whistleblower Program

The SEC Whistleblower Program and CFTC whistleblower program offer financial rewards to incentivize reporting of securities or commodities fraud. Both programs award whistleblowers 10% to 30% of the monetary sanctions collected in successful enforcement actions, with a minimum threshold of $1 million in sanctions for the SEC. To be eligible, whistleblowers must provide original information that leads to these successful actions. 

Foreign Corrupt Practices Act (FCPA)

This law prohibits U.S. companies and individuals from bribing foreign officials to obtain business advantages. While it has its own whistleblower provisions, some Foreign Corrupt Practice Act (FCPA) violations can also fall under the purview of the Dodd-Frank Act and thus a whistleblower complaint can be filed under the SEC or CFTC programs. This overlap allows whistleblowers with information on FCPA violations to choose the program that best suits their situation. 

Foreign Corrupt Practices Act (FCPA) and Dodd-Frank can both apply. You can report to either SEC or DOJ (Department of Justice): 

• SEC Whistleblower Program
• Department of Justice (DOJ)

Anti-Money Laundering (AML) – For Cases Involving Money Laundering Schemes

This is a broad term encompassing laws, regulations, and financial industry practices designed to prevent criminals from disguising (“laundering”) illegal proceeds to appear legitimate.

The Bank Secrecy Act (BSA), which falls with AML scope, is designed to combat money laundering and terrorist financing – it requires financial institutions to report large cash transactions, requires Know Your Customer (KYC) procedures, and documentation regarding financial transactions.

The Financial Crimes Enforcement Network (FinCEN) is a bureau within the U.S. Department of Treasury who enforces AML and BSA, and coordinates investigations on AML and international financial crimes. 

File whistleblower complaints with the Financial Crimes Enforcement Network (FinCEN): 

• BSA E-Filing System
• Toll-Free Hotline 

The FinCEN Whistleblower Program also offers financial incentives to encourage reporting of violations related to anti-money laundering (AML) and sanctions evasion. Similar to the SEC and CFTC programs, whistleblowers can be awarded 10% to 30% of the monetary sanctions recovered by the government, but with a key difference.

FinCEN’s minimum threshold for awarding a bounty kicks in at $1 million more than $1 million. This means the total recovered sanctions must be over $1 million for whistleblowers to be eligible for a reward.

As with other programs, eligibility hinges on providing original information that leads to successful enforcement actions. 

Internal Revenue Service (IRS) Whistleblower Program – For Criminal and Non-Criminal Tax Evasion

The IRS Whistleblower Program empowers individuals with knowledge of tax wrongdoing to come forward and report tax evasion. It offers financial rewards and protections to incentivize whistleblowers and crack down on tax cheats.

Whistleblowers can submit a whistleblower complaint about various tax violations, including individuals or businesses underreporting income, failing to file tax returns, or claiming false deductions or credits. Individuals must use IRS Form 211, Application for Award for Original Information.

The IRS Whistleblower Program provides monetary awards to individuals who report tax fraud and other tax-related violations. Unlike the SEC, CFTC, and FinCEN programs, the IRS program does not have a minimum threshold based on recovered sanctions. Instead, awards are based on a percentage 15% to 30% of the collected taxes, penalties, and interest that result from the whistleblower’s information. The total amount recovered must exceed $2 million.  

False Claims Act (FCA) and Qui Tam – For Government Contract Fraud

This is a powerful U.S. law enacted in 1863 to deter fraud against the government. It prohibits knowingly submitting false statements to obtain money or property from the government or avoiding a legal obligation to pay the government. The False Claims Act (FCA) applies to a wide range of situations, but government contracting is a major focus.

Qui tam is a key feature within the FCA that empowers individuals, known as relators, to file qui tam lawsuits on behalf of the government. Relators typically have firsthand knowledge of fraudulent activity within a government contract. The FCA establishes the legal framework for pursuing government contract fraud, while the qui tam provision empowers whistleblowers to become active participants in uncovering and prosecuting such fraud. 

Because there are important requirements involved in filing a False Claims Act qui tam action – many individuals decide to obtain legal counsel before filing a qui tam action.

Qui tam lawsuits filed under the FCA do not offer a pre-determined percentage of recovered funds. Instead, whistleblowers can receive awards ranging from 15% to 30% of the total amount the government recovers from the defendant through settlements, judgments, or fines. 

Anti-Kickback Statute and Stark Law

The Anti-Kickback Statute (AKS) prohibits offering, paying, soliciting, or receiving kickbacks in exchange for referrals of patients or business for healthcare services covered by federal programs like Medicare and Medicaid. Typical violations include Medicare Part C fraud. Violations can be prosecuted criminally or civilly.  

Whistleblowers can report violations to the government and may be eligible for rewards under FCA’s qui tam provision (above) if the information leads to a successful prosecution. 

Stark Law restricts physician referrals for certain designated health services (DHS) to entities with which the physician or their family members have a financial relationship. Like the AKS, violations can be prosecuted, and whistleblowers may be eligible for rewards under FCA’s qui tam provision. 

DOJ Whistleblower Program – Corporate and Financial Misconduct

The Department of Justice (DOJ) Whistleblower Program will be the first whistleblower award program administered by the U.S. Department of Justice. On March 7, 2024, Deputy Attorney General Lisa Monaco announced that the DOJ was engaging in a “90-day policy sprint” to develop the program. 

The DOJ Whistleblower Program will offer monetary awards to individuals who voluntarily provide the DOJ with original information about “significant corporate or financial misconduct” that is under the authority of the DOJ and not covered by other whistleblower award programs.

The DOJ has yet to announce or establish official channels to file a whistleblower complaint under the new program and have not announced specific eligibility requirements. 

Whistleblowing can be done through various channels depending on the specific program you are reporting under (see the previous section). Here is a breakdown of the common filing methods: 

• Online Forms: most of the whistleblower programs listed above offer a method for submitting your complaint electronically. This is often the quickest and easiest way to initiate the process.
• Hotlines: we advise against using internal hotlines, as they are monitored by those in power. However, some whistleblower programs (external) have dedicated phone hotlines where you can speak directly with a representative and report your concerns. This might be preferable if you have questions or require clarification during the filing process.
• Written Reports: you may also have the option to submit a written report via post. This method allows you to present a comprehensive overview with supporting evidence like documents or recordings. 

Regardless of the filing method you choose, it is vital to follow the program’s specific instructions carefully. Each program may have unique requirements regarding the format, content, and supporting evidence needed for a complaint.  

Following these instructions precisely ensures your complaint receives proper consideration and avoids delays or even dismissal due to missing information. Again, we advise retaining an attorney before submitting any complaint on your own as the process can be cumbersome. 

Note on Anonymous Reporting

It’s important to note that not all programs allow for filing an anonymous whistleblower complaint. This is especially important for those who are blowing the whistle on powerful corporations or criminals and do not want their identity exposed.

The programs that do allow anonymous whistleblower complaints will require that the whistleblower hire a U.S.-based attorney. It is also important to note that most programs require a U.S.-based whistleblower attorney when filing for their claim to an award. 

The decision to involve a whistleblower attorney is an important one and can determine the trajectory of your whistleblower complaint. Here is a breakdown of the pros and cons of hiring a whistleblower attorney, which will help you decide: 

Pros of Having a Whistleblower Attorney:

• Legal Expertise: navigating the process of filing a whistleblower complaint can be complex, fraught with many obstacles. A whistleblower attorney can ensure you understand your rights and responsibilities under the relevant whistleblower program.
• Protection of Anonymity: anonymity should be important to you, and an attorney can advise on the best course of action to maximize the chance of protecting your identity. Check with the program
• Increased Success Rate: attorneys experienced in whistleblower cases can improve your complaint’s chances of success. They know how to gather and present evidence effectively, build a compelling case, and navigate potential roadblocks.
• Support and Guidance: whistleblowing can be a life altering experience. An attorney can provide valuable support and guidance throughout the process, ensuring you feel informed and empowered.

Cons of Not Having a Whistleblower Attorney:

• Legal Complexity: whistleblower laws can be intricate, and you might unknowingly miss crucial steps or fail to present your case optimally.
• Protecting Anonymity: without legal guidance, you might unintentionally compromise your anonymity during the filing process.
• Lower Success Rate: going it alone can decrease the likelihood of a successful outcome, potentially leaving the wrongdoing unaddressed.

While not required, retaining a whistleblower attorney can offer huge advantages. Their expertise can increase your chances of a successful outcome while protecting your rights and navigating the complexities involved. 

Once you have filed your whistleblower complaint, here is a general overview of what to expect:

Investigation Process

The receiving agency will typically initiate an investigation to assess the validity of your claims. This may involve reviewing documents, interviewing witnesses (including you), and potentially contacting your employer. The specific timeline and procedures will vary depending on the program and the nature of the alleged wrongdoing. 

Confidentiality

While whistleblower programs strive to maintain confidentiality, there may be limitations. The extent to which your identity remains confidential depends on the program’s policies and the specific details of your case. Most will do their absolute best to maintain confidentiality, but there are no guarantees.

Potential Retaliation

It’s important to be aware that some employers might attempt retaliation after you file a whistleblower complaint. This could include negative performance reviews, disciplinary actions, or even termination.

Whistleblower Protection Programs

Fortunately, whistleblower programs offer various levels of protection against retaliation. Depending on the program, they may: 

• Prohibit employers from retaliating against whistleblowers who report violations. 
• Offer legal assistance if you experience retaliation. 
• Provide a mechanism for filing a retaliation complaint against your employer. 

Limitations of Protection

It’s important to understand that whistleblower protections are not absolute. There might be limitations depending on the specific program and the type of retaliation experienced. An attorney can provide more specific details on the available protections in your case. 

Staying Informed

The receiving agency will keep you updated on the investigation’s progress within the limitations allowed by law. However, the process can take time, so patience is key.  

By understanding the potential timeline, confidentiality considerations, and whistleblower protections (with their limitations), you can be better prepared for what might unfold after filing your complaint. 

• Gather Evidence: Document the wrongdoing with concrete details, dates, and any supporting evidence like emails, recordings, or physical documents.
• Identify the Right Program: Research whistleblower programs relevant to the issue you are reporting. Consider internal reporting options first, then external programs if necessary.
• Choose Your Filing Method: Familiarize yourself with the program’s preferred filing method, whether it is online forms, phone hotlines, or written reports.
• Understand Anonymity: Determine if the program allows for anonymous reporting and weigh the pros and cons based on your situation.
• Follow Instructions Carefully: Meticulously follow the program’s specific filing guidelines to ensure your complaint receives proper consideration. 

While not required, involving a whistleblower attorney can significantly strengthen your complaint and protect your rights. Their expertise can navigate legal complexities, maximize the chances of a successful outcome, and offer invaluable support throughout the process. 
 
If you have any questions or would like to report a concern, please contact our attorneys today for a free consultation – most of our attorneys work on a contingency basis, which means we do not receive payment unless we win your case.