Various federal and state laws and whistleblower programs allow whistleblowers to report fraud for violations of federal securities or commodities laws and regulations, tax fraud, and fraud against the government.

WHAT LAWS EXIST FOR WHISTLEBLOWERS TO REPORT FRAUD?

The oldest and most successful whistleblower program is found in the qui tam provisions of the False Claims Act, a federal law and the government’s primary civil remedy to recover false claims for government funds and property. This law has been so effective, roughly 30 states and local governments have also passed these laws to protect state and local funds.

In the area of health care fraud, although the Anti-Kickback Statute does not itself allow for direct enforcement by private whistleblowers, violation of that law often is a predicate violation for a False Claims Act lawsuit.

Under the SEC and CFTC whistleblower programs, whistleblowers are rewarded for reporting on securities and commodities fraud. To file, the whistleblower must have a reasonable belief that the information he or she provides constitutes fraud. This is also true of the IRS whistleblower program which encourages the reporting of tax fraud.

A more recent program rewards whistleblowers who report violations of certain Anti-money-laundering laws.

With respect to each of these programs, whistleblowers should always consult with an experienced attorney with a history of success under these programs so that whistleblower interests are protected.

WHAT LAWS PROTECT WHISTLEBLOWERS?

The False Claims Act, the whistleblower programs enacted by Congress under the Dodd-Frank Act, which established the SEC and CFTC whistleblower programs, and the IRS whistleblower program all contain certain critical protections for whistleblowers. These can include anonymity and confidentiality protections and protection from retaliation. Whistleblowers can often sue an employer who terminates, demotes, suspends, threatens or otherwise retaliates against a whistleblower. Persons retaliated against under can sometimes  file suit in federal court seeking reinstatement, back pay and special damages, including litigation costs.

WHAT TYPE OF FRAUD IS COVERED UNDER WHISTLEBLOWER LAWS?

Between the various whistleblower laws, there are many types of fraud covered, including: all manner of fraud against the government in health care, defense contracting, and other government spending, securities fraud, commodities fraud, and tax fraud.

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