There are numerous avenues for whistleblowers to file a lawsuit. The False Claims Act (FCA) permits whistleblower lawsuits against individuals and companies who defraud the government in any number of ways.

The SEC and CFTC Whistleblower Programs under Dodd-Frank also rewards whistleblowers for reporting financial institutions and publicly traded companies that, through fraudulent or deceptive practices, harm investors and clients. The IRS also operates a whistleblower program through which whistleblowers can report individuals and companies committing tax fraud. 

There are many more ways that a whistleblower may report, and be financially rewarded, for his or her courage to step forward. But time is of the essence: most whistleblower programs require that the claimant be the first individual to report a claim to be eligible for a reward. Thus, if you have a potential whistleblower claim, it is essential that you speak to a whistleblower attorney right away to preserve your rights and determine if your claim is actionable.Various state laws may also address situations where a whistleblower has been wrongfully terminated or retaliated against for reporting violations of the law.

The Whistleblower Award under the False Claims Act and other whistleblower programs can be significant. 

As an example, Medicare & Medicaid whistleblowers receive hundreds of millions of dollars each year for exposing unlawful activity. Under the FCA, an intervened whistleblower case can result in an award of around 20% of the government’s recovery, with an average settlement value of approximately $13 million. If the whistleblower proceeds and succeeds without the government’s intervention, the whistleblower award can be between 25% to 30% of the total amount recovered.

The whistleblower lawyers at Brown, LLC work hard to maximize your whistleblower award, because the firm is only paid if you win your case.

A Qui Tam Lawsuit, also known as a whistleblower lawsuit is generally filed pursuant to the False Claims Act (FCA), which requires the use of an attorney. The case must be filed under seal with proper notice given to the various government agencies on behalf of the whistleblower, also known as a relator.

Brown, LLC has a whistleblower division led by Jason T. Brown, a former FBI Special Agent and Legal Advisor.  Our team has recovered tens of millions of dollars for the government and significant whistleblower awards for our clients. Because the whistleblowing process is complex and rife with pitfalls, it is essential to have a trusted lawyer by your side who can direct a thorough investigation and help you present the strongest case to the government.

In some cases, such as the SEC Whistleblower Program, whistleblower may be able to file claims anonymously through counsel and remain anonymous from start to finish. However, whistleblowers who file False Claims Act suits, although initially under seal, will have their identity disclosed at some point. The statutes entitle the successful prosecution of a case that is attributable to the whistleblower a portion of the recovery.

– Securities fraud takes place when companies seek to manipulate stock prices by, among other things, making false and misleading statements to investors, or in their filings with the Securities and Exchange Commission (SEC) or put the best interest of the client after their own economic interest by insider trading, churning accounts, excessive fees, failure to give best pricing or other fraudulent behavior. With the use of an SEC whistleblower lawyer you can potentially remain anonymous from start to finish.

– Commodities fraud is addressed through the Commodity Futures Trading Commission (“CFTC”) Whistleblower Program, which targets manipulations of commodity futures, options, and swaps that harm investors and consumers. If you know of abusive or deceptive conduct by banks, financial firms, and other entities involved in the sale and exchange of derivatives and other financial instruments, you may be entitled to a significant whistleblower award.

– Tax fraud can be reported to the IRS if you have credible information that an entity or individual is knowingly not paying federal taxes. If the value of the underpayment exceeds $2 million, you may be entitled to a portion of the amount collected. Additionally, if the tax fraud occurs in New York, the New York False Claims Act permits whistleblowers to  privately sue on behalf of the government those who knowingly fail to pay state taxes.

– Money laundering occurs when money is routed through banks and  other financial entities and conceals the source of those funds. The recently-enacted Anti-Money Laundering Act awards whistleblowers up to 30% of the proceeds recovered in any judicial or administrative proceeding against a financial institution, business or other entity committing money laundering.  One example of money laundering is in the cannabis industry, where banks and other entities have held or routed proceeds of marijuana sales, which, although legalized in some states, remain illegal under federal law.

Some example of actionable vs non-actionable whistleblower cases:

Actionable: You have insider knowledge that a hospital is providing kickbacks to non-employees in exchange for incoming referrals of Medicare or Medicaid patients. This is actionable under the False Claims Act and the Anti-Kickback Statute.

Non-Actionable: Your neighbor is receiving Medicare benefits despite not being eligible. This is not actionable under the False Claims Act because it is too particularized with no evidence of systemic Medicare fraud. The conduct may still be criminal, but is unlikely to lead to a whistleblower award under the FCA.