Financial Rewards For Whistleblowers

Below, whistleblower attorney Tony Munter discusses rewarding whistleblowers and why it is important. To learn more about whistle-blowing or to report fraud, call today and schedule a free consultation.

Are False Claims Act Cases The Only Kind You Can File to Get a Reward As a Whistleblower?

No, it’s not. In addition to the Federal False Claims Act, there are 29 or 30 state False Claims Acts with various levels of claims that one can bring.

There’s also two relatively new whistleblower laws that were enacted as a result of the Dodd Frank legislation; one with the Securities and Exchange Commission, the other with the Commodity’s Future Trading Commission.

And those two whistleblower laws don’t work exactly like the Federal False Claims Act but they do provide rewards if those    agencies take the information from the whistleblower and obtain some kind of an act, a judgement, or action as a result.

If all this takes place, then the whistleblower gets a reward, and that’s a good thing.

On top of these is the IRS whistleblower law to report major tax fraud to the IRS. And the IRS provides rewards when they take an action as a result of the whistleblower’s report leads to them collecting money.

Why Are Whistleblower Rewards Important?

They are important in several ways. It’s important for the government to recognize the contribution of whistleblowers in a concrete way and it’s important that everybody understands that blowing a whistle is a difficult and heroic act and so therefore rewarding the whistleblower is appropriate.

It not only rewards that individual whistleblower, but changes the way people think about whistleblowers to understand that they are deserving of some kind of reward. The other thing is people tend to think of the whistleblower reward as incentivizing whistle blowing.

Without the rewards, there’s no way for an individual to pursue a major claim against a big fraud company in any kind of professional way. To do it, one needs legal help. You need a whistleblower attorney. You need a whistleblower lawyer.

And absent the possibility of a reward, there is now way for an individual’s attorneys to be able to pursue these cases. So the whistleblower reward helps make the whole process of exposing fraud possible.

And you know, the studies and the results clearly indicate that the False Claims Acts and its whistleblower rewards had been the most successful way of combating fraud that anyone has come up with thus far.