Scienter is a legal term that refers to a person’s knowledge or intent to commit a wrongful act. In the context of fraud and other white-collar crimes, scienter typically means that the person partook in the violation they report, having known that their actions were wrong or reckless.

How Scienter Relates to Whistleblowing

Whistleblowers often expose fraudulent or illegal activities that involve a degree of scienter. For example, a whistleblower might report a company that knowingly submitted false claims to the government or engaged in deceptive marketing practices. In these cases, the company’s intent to deceive is a key element of the wrongdoing.

Whistleblower protection laws often require that the whistleblower have a reasonable belief that the conduct they are reporting is fraudulent, false, or wasteful. This suggests that the whistleblower must have some knowledge, suspicion, and/or proof of wrongdoing, which aligns with the concept of scienter.

By uncovering fraudulent activities that require a certain level of intent or knowledge and reporting such misconduct, whistleblowers help to protect the public interest and ensure that wrongdoers are held accountable.