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Whistleblowers play a crucial role in exposing those who are in violation of federal and state laws. Whistleblowing may pertain to a violation of federal securities, tax laws, and environmental laws.
If you are considering blowing the whistle on your employer, you may be afraid to do so for fear of retaliation. When you hire me, Peter Katz, you are hiring someone who will protect your rights. I have successfully represented clients in qui tam lawsuits, bringing the wrongful party to justice while protecting my client’s job.
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CONTACT US TODAYWhat is Whistleblowing?
A whistleblower is someone who reports illegal activity, bringing wrongdoers to justice. A whistleblower reports sensitive information to an authorized recipient (someone who has the authority to take legal action). Both federal and state laws provide whistleblowers protection from being fired, demoted, or otherwise discriminated against by their employers.
Many people are afraid to report an employer’s wrongdoing out of fear of being fired, demoted, or blacklisted. I will examine your situation to discern if there is evidence establishing that you were retaliated against. If evidence exists, then I will assist you in taking legal action to recover lost pay and any other expenses because of your employer’s retaliation.
Forms of Employer Retaliation
If an employer finds out that an employee was a “tattle tale,” the employer may retaliate in any of the following ways:
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Firing an employee
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Demoting an employee
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Denying employee benefits (vacation time and health care benefits)
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Reducing pay or limiting work hours
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Blacklisting: Preventing an employee from being hired elsewhere by providing negative feedback on a person’s job performance
Whistleblower protection laws safeguard employees against this type of treatment. As a whistleblower and retaliation attorney, I seek to protect your job while ensuring that you are receiving fair treatment after reporting misconduct.
The False Claims Act
The False Claims Act (FCA) of 1863 punishes anyone who attempts to defraud the federal government. It was originally implemented during the Civil War to combat fraud committed by contractors who sold the Union Army supplies.
The federal government does not have enough time or resources to go after everyone that defrauds the government. The FCA has a provision that allows private citizens to take legal action on behalf of the government. This is known as filing a qui tam lawsuit. In successful actions, citizens may receive a portion of the government’s damages, usually 15 percent to 30 percent of the entire award.
SEC Whistleblower Program
The Securities and Exchange Commission (SEC) has implemented a whistleblower program that offers financial incentives for individuals who report violations of federal securities laws. To collect under the program, an individual must provide the SEC with original information regarding a violation of federal securities laws. Additionally, the lawsuit must result in at least $1 million in monetary sanctions. If these requirements are met, a whistleblower can receive an incentive award of 10% to 30% of the sanction amount.
In addition to the SEC whistleblower program, there are certain acts that have expanded the rights given to whistleblowers. Two notable acts include The Sarbanes-Oxley Act and the Dodd-Frank Act.
The Sarbanes-Oxley Act (SOX) of 2002 protects employees who blow the whistle on any employer or organization that is in violation of the U.S. Code, or any rule or regulation instituted by the Securities and Exchange Commission (SEC). It protects investors from fraudulent reporting by corporations, while also establishing standards for auditing a corporation to make sure they are in compliance with federal law.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, commonly referred to as the Dodd-Frank Act, institutes financial regulations that protect American families. By inhibiting mortgage companies and payday lenders from exploiting consumers, it prevents the risk-taking that led to the financial crisis of 2008.
The Dodd-Frank Act allows whistleblowers to report violations regarding the Act anonymously. The Dodd-Frank Act also gives whistleblowers who are retaliated against the right to file a private lawsuit in federal court. Employees who file a retaliation lawsuit may be entitled to double back pay (including interest), reinstatement, attorney’s fees, and reimbursement for certain costs related to the suit.
IRS Whistleblower Program
The Internal Revenue Service (IRS) has a division devoted to whistleblowers. Individuals who supply the IRS information regarding individuals who are non-compliant with tax laws are awarded 15 to 30% of the proceeds collected.
To qualify for the Whistleblower program award under section 7623 of the Internal Revenue Code (IRC), the following conditions must be satisfied:
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The whistleblower’s information must be signed and submitted under penalty of perjury
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The amount in dispute must be greater than $2 million
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The taxpayer who is privy to the action must have a gross income greater than $200,000 for at least one tax year in question
EPA Whistleblower Laws
The Environmental Protection Agency, or EPA, protects the health of the public, as well as preserving the environment. The EPA accomplishes this through environmental sampling, monitoring, decontamination, disposal, and environmental surveillance. Since its creation in 1970, the EPA has helped to reduce toxic air pollutants worldwide.
Two notable EPA Acts that offer whistleblower protections include:
The Clean Air Act (CAA) regulates air emissions from vehicles, power plants, chemical plants, and industrial factories. It strives to reduce greenhouse gas emissions, providing timetables for specific actions. CAA does include whistleblower protection, prohibiting employers from retaliating against employees that report violations.
The Toxic Substances Control Act (TSCA) gives the EPA the authority to screen chemical substances both produced and imported into the United States. TSCA evaluates potential risks to both human health and the environment. TSCA also provides whistleblowers protection against retaliation.
New DOJ Criminal Whistleblower Programs
The Department of Justice (DOJ) is constantly trying to encourage voluntary disclosure by employees of corporate criminal conduct. One new aspect of the DOJ whistleblower program went into effect this year, called the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure Policy. This applies to self-disclosure of certain types of criminal conduct committed after April 15, 2024.
This program applies to potential criminal conduct, including the following:
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Investment or securities fraud
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Money laundering
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Bribery
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Foreign corruption
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Healthcare fraud
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Government contracting fraud
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Kickbacks involving public officials
When an employer reports such conduct and meets certain criteria, the DOJ now protects the employee from prosecution as part of the criminal scheme. They can receive a non-prosecution agreement (NPA) in exchange for their whistleblowing and further cooperation.
To be eligible for an NPA, a whistleblower must:
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Report original and nonpublic information
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Report the information before requested by the DOJ or another investigative or judicial body
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Include the complete information available to them in the report
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Agree to provide substantial assistance and full cooperation with the DOJ or other investigations
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Forfeit any profit they might have received due to the criminal conduct
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Agree to pay victim restitution as applicable
Further, the DOJ recently rolled out another new program on August 1, 2024, that provides financial incentives to whistleblowers who do not qualify for qui tam actions under the False Claims Act.
The Corporate Whistleblower Awards Pilot Program encourages whistleblowers to report information regarding corporate criminal conduct involving financial institutions, foreign or domestic corruption supported by corporations, private insurance healthcare fraud, and more. Because the False Claims Act only applies to fraud against the government, this new program offers a potential award to whistleblowers of non-government-related fraud when forfeiture occurs as part of the prosecution.
Reach Out to a Whistleblower Attorney Today
Although whistleblowers are not always kindly looked upon, they provide a valuable service to society. The federal government and agencies offer several protections to whistleblowers, giving them the incentive to report wrongful conduct.
If you are considering bringing an injustice to light, I would like to hear from you. I offer free consultations to whistleblowers, allowing them to speak confidentially regarding their issues. To schedule your free consultation or to learn more, contact us by completing the online intake form.
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