How Do I Know if I Can Be a Whistleblower?

All persons with original, credible information concerning fraud can become whistleblowers – this is particularly true when the victim of that fraud is the government, investors or taxpayers. There are several programs in the U.S. that financially reward and to varying degrees protect whistleblowers who come forward to report fraud to authorities.

A common misconception is that a whistleblower has to have worked for the company committing the fraud. While it is true that many whistleblowers come forward to shed light on wrongdoing perpetrated by their employers, this is not a mandate, and whistleblowers often come forward with information related to entities they do not work for. All that is required under the various U.S. whistleblower programs that reward whistleblowers is that a whistleblower have specific knowledge of fraud, regardless of whether they witnessed the fraud themselves.

The question whether a person has information qualifying that person to be a successful whistleblower is one that needs to be discussed with an experienced attorney with a track record of success under the relevant whistleblower laws: in particular the federal and state False Claims Act laws, the SEC and CFTC Dodd-Frank Whistleblower Programs, and the IRS whistleblower program.

Whether one should become a whistleblower is also a question best discussed with a highly qualified attorney who can talk through the risks and potential rewards of bringing a whistleblower case.

Hagens Berman, led by managing partner, Steve Berman, and head of whistleblower practice, Shayne Stevenson, continues to have great success representing dozens of whistleblowers under whistleblower reward programs.

SHOULD A WHISTLEBLOWER REPORT INTERNALLY? TALK TO A WHISTLEBLOWER ATTORNEY FIRST

Many companies have internal channels through which whistleblowers are allowed or sometimes encouraged to report wrongdoing. But before considering this option, it is best to speak with an experienced whistleblower lawyer at a firm like Hagens Berman. There are potential risks to internal reporting that whistleblowers need to be aware of. Regardless of whether one has already reported internally, whistleblowers are often eligible for lucrative financial rewards for reporting to the government as well. Hagens Berman has an extensive track record of prevailing in whistleblower cases, as well as protecting its clients from retaliation by employers.

TYPES OF FRAUD A WHISTLEBLOWER CAN REPORT

With the help of an experienced whistleblower attorney, whistleblowers are able to file claims involving fraud committed against a government agency under federal and state False Claims Act laws, securities fraud which is reported confidentially to the SEC, violations of the Commodities Exchange Act or CFTC Rules reported confidentially to the CFTC, and tax fraud reported confidentially to the IRS.

Before reporting wrongdoing, whistleblowers are best protected and best able to maximize a potential award by speaking with experienced, successful whistleblower counsel who will help determine whether the potential claims are specific, original, credible and relevant to the Department of Justice, Securities and Exchange Commission, Commodity Futures Trading Commission, or the Internal Revenue Service. There are innumerable types of fraudulent conduct relevant to these enforcement agencies. Some of the most common types of fraudulent conduct that whistleblowers may encounter or discover either within their own employer’s business or outside of their company:

Payments to physicians or hospitals from pharmaceutical companies in return for drug promotion or purchasing
Promotion of drugs and medical devices for unapproved (or off-label) uses
Fraudulently increasing the price Medicare or a government-sponsored health care plan pays for patient care
Improper billing on government contracts
Violations of the Anti-Kickback Statute or Stark Act
Supplying the government with defective parts or other work product that fails to abide materials terms of government contracts
Fraudulent inducement in support of securing a government contract
Lack of quality control or knowing disregard of required government standards under a contract
Obtaining a government contract through bid-rigging
Tax-evasion schemes, misrepresentation of income or unlawful use of foreign tax credits.
Various forms of securities and commodities trading fraud, including violations of the Foreign Corrupt Practices Act, market manipulation and Ponzi schemes.
False and misleading statements in financial filings by public companies
Front-running, where a trader is aware of pending orders for a security and buys or sells unfairly.
Accounting fraud, in which accountants fail to identify false information made by clients regarding their financial status.
Outright embezzlement from investors.
Pump-and-dump schemes and stock manipulation, including false statements regarding a public company’s financial reports and lying to corporate auditors.
Insider trading.

CAN I STILL BE A WHISTLEBLOWER IF I PARTICIPATED IN THE FRAUD?

Often the question whether a person can qualify for a potential reward as a whistleblower under one of the government reward programs if the person participated in the fraudulent activity turns on the degree of involvement. Architects of fraudulent schemes cannot generally be rewarded – and for good reason. Other times whistleblowers do not come to understand the unlawful nature of certain activity until having engaged in it for some time. It very much depends on the facts of the matter and an experienced whistleblower attorney will be able to help determine the likelihood of potential success as well as potential risks associated with coming forward under those circumstances.

WHEN SHOULD A WHISTLEBLOWER REPORT FRAUD?

A whistleblower should report fraud as soon as possible with the help of an experienced whistleblower attorney. While potential whistleblowers should take the time to make sure they are committed to coming forward with a whistleblower claim, waiting too long bears the risk of another whistleblower filing a similar claim first, thus better positioning themselves for a financial windfall at the end of a successful investigation. The timeliness of your claim and reported information can also mean your blowing the whistle is all the more valuable to the government. If whistleblowers wait too long to report fraud after it is committed, they’re liable to receive a smaller reward.

WHISTLEBLOWER SUCCESSES

Hagens Berman’s success in litigating whistleblower claims is virtually unrivaled. The firm’s work in the area of securities fraud resulted in the largest SEC fine ever levied against a U.S. financial exchange, while one prominent CFTC whistleblower case involving 2010’s infamous “Flash Crash” resulted in the first-ever Department of Justice prosecution and guilty plea following extradition of a foreign market manipulator. Hagens Berman’s whistleblower attorneys also earned a two clients large awards in cases against Bank of America for mortgage fraud that played a role in our recent financial crisis.

HAGENS BERMAN REPRESENTS WHISTLEBLOWERS

Hagens Berman’s team of expert whistleblower attorneys, led by Managing Partner Steve Berman and Head of Whistleblower Practice Shayne Stevenson, has the track record, reputation and knowledge to advocate for whistleblower clients in ways others do not. Unlike smaller, less experienced whistleblower law firms, Hagens Berman has more than 80 attorneys worldwide taking on cases involving corporate fraud and other misdeeds, giving the firm the resources and expertise necessary to take on a broad range of whistleblower cases.

HOW TO BECOME A WHISTLEBLOWER

If you know of a specific act of fraud committed against the government, tax fraud, securities fraud, or a Commodities Exchange Act violation and would like to consider becoming a whistleblower and discuss your legal rights and protections, contact our whistleblower team at [email protected] or by filling out the secure form on this page.