What is whistleblowing?

Whistleblowers are people who expose unethical or illegal wrongdoing within companies by reporting it internally to superiors or externally to the media, government authorities, or specialized attorneys. They can be either current or past employees (insiders), or outside individuals who are familiar with the unlawful conduct, and are not required to be U.S. citizens.

What is a qui tam?

Qui tam is the legal process where an individual sues on behalf of the government and shares in the proceeds of any successful litigation or settlement. Qui tam laws like the False Claims Act (FCA) offer financial rewards to successful whistleblowers.

Are whistleblowers protected?

Historically, people who blew the whistle often experienced retaliation by their employers and others in their industry. In order to prevent this unfair retaliation, the federal authorities have passed numerous protection laws. Though the legal details of these statutes vary, they all provide protection and legal recourse for employees who blow the whistle, including anonymous fraud reporting and other policies that allow those who have been retaliated against to sue their employer for compensation and reinstatement.

Federal whistleblower programs

Whistleblower (WB) laws allow individuals to file a claim and collect a share of the amount the government recovers because of the information they provided. Those courageous enough to come forward and report fraud play a central role in fighting corruption both in the United States and abroad.

In order to encourage potential qui tam relators to come forward, a number of federal programs have been created and strengthened during the past 30 years. These government plans allow private individuals to report instances where a company or individual defrauds or steals money from a public entity, fails to pay taxes, or violates federal securities and foreign corrupt practices law. These programs also provide financial rewards to plaintiffs who bring successful cases to court.
Depending on the information you possess and the type of malfeasance involved, your potential case may be filed under one or more of the following programs:

The False Claims Act (FCA)
Internal Revenue Service (IRS) WB Program
Securities and Exchange (SEC) WB Law
Foreign Corrupt Practices Act (FCPA) WB Reward
Commodity Futures Trading Commission WB Incentives and Protection

In recent years, corporations have used increasingly sophisticated techniques to circumvent laws and regulations and hide their misbehavior. In response, U.S. authorities have enacted additional laws and practices to better protect those who come forward and created new ways them to report waste and abuse.

Types of Whistleblower Fraud

Fraud against the government occurs in every industry that receives public funds. Historically, the largest FCA settlements have been in sectors that receive billions in funding each year, such as healthcare and defense. Private companies in these industries get large amounts of money as part of Medicare and Medicaid, or defense contracts. More recently, the Securities and Exchange Commission (SEC) has devoted significant resources to its own program, and is likely to pursue large settlements against financial institutions for violating SEC regulations in the near future.
Some of the most common categories of fraud include:

Healthcare Fraud (Medicare and Medicaid)
Pharmaceutical Fraud
IRS Tax Fraud
Government Contractor and Defense Contractor Fraud
Foreign Bribery and Corruption (FCPA)
Securities Fraud
Education Fraud
Procurement Fraud

Learn About the Different Types of Government Fraud

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