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='''Welcome to the Whistleblower Wiki'''= | |||
'''Zuckerman Law’s Whistleblower Law Wiki''' provides an overview of the major laws providing rewards or incentives for whistleblowing and laws that protect whistleblowers against retaliation. The wiki includes links to key statutes, regulations, legislative history, articles, and other sources of information. | |||
Zuckerman Law maintains this resource to help inform whistleblowers about their rights and navigate the complex weave of federal and state whistleblower laws. Matt Stock and Jason Zuckerman encourage readers to inform them of any errors or suggested updates. | |||
'''Information on this wiki is provided for informational purposes only and should not be construed as or relied upon as legal advice. This wiki may be deemed attorney advertising. If you are seeking advice concerning a [https://www.zuckermanlaw.com/sp_faq/what-is-a-whistleblower-reward/ whistleblower reward] or [https://www.zuckermanlaw.com/legal-services/whistleblower-retaliation-and-whistleblower-protection-lawyers/ whistleblower retaliation] matter, contact [https://www.zuckermanlaw.com/sp_faq/choose-best-whistleblower-attorney/ experienced counsel]. [https://www.zuckermanlaw.com/attorneys-profile/matthew-stock-cpa/ Matt Stock] and [https://www.zuckermanlaw.com/attorneys-profile/jason-zuckerman/ Jason Zuckerman] are responsible for the content on this wiki.''' | |||
='''[[SEC Whistleblower Program]]'''= | |||
Under the SEC Whistleblower Program, the SEC will issue awards to whistleblowers who provide original information that leads to enforcement actions with total monetary sanctions (penalties, disgorgement, and interest) in excess of $1 million. In exchange for the valuable information, '''a whistleblower may receive an award of between 10% and 30% of the total monetary sanctions collected'''. | |||
In determining an award percentage, the SEC considers the particular facts and circumstances of each case. For example, positive factors that may increase an award percentage include the significance of the information, the level of assistance provided by the whistleblower and the whistleblower’s attorney, and the law enforcement interests at stake. On the other hand, negative factors that may decrease an award percentage include unreasonable delay in reporting the violation to the SEC and the culpability or involvement of the whistleblower in the violation. | |||
Under the SEC Whistleblower Reward Program, '''whistleblowers can [https://riskandcompliancemagazine.com/tips-for-whistleblowers-to-qualify-for-an-sec-whistleblower-award submit tips anonymously'''] to the SEC through an attorney and be eligible for an award for exposing any material violation of the federal securities laws. | |||
'''Contents:''' | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#Overview Overview] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#Awards_History%3A_SEC_Whistleblower_Program_A_Success Awards History: SEC Whistleblower Program A Success] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#SEC_Office_of_the_Whistleblower SEC Office of the Whistleblower] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#Securities_Law_Violations_that_Qualify_for_an_SEC_Whistleblower_Award Securities Law Violations that Qualify for an SEC Whistleblower Award] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#Lessons_Learned_from_SEC_Whistleblower_Award_Determinations Lessons Learned from SEC Whistleblower Award Determinations] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#Prevailing_in_a_Retaliation_Whistleblower_Case_With_Prior_Performance_Problems Prevailing in a Retaliation Whistleblower Case With Prior Performance Problems] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#Submitting_a_Tip_Anonymously_to_the_SEC_Office_of_the_Whistleblower Submitting a Tip Anonymously to the SEC Office of the Whistleblower] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#10-Step_Summary_of_the_SEC_Whistleblower_Process 10-Step Summary of the SEC Whistleblower Process] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#Employment_Protections_Available_for_SEC_Whistleblowers Employment Protections Available for SEC Whistleblowers] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#Largest_SEC_Whistleblower_Awards Largest SEC Whistleblower Awards] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/SEC_Whistleblower_Program#International_Schemes_and_SEC_Enforcement_Actions International Schemes and SEC Enforcement Actions] | |||
='''[[CFTC Whistleblower Program]]'''= | |||
The CFTC Whistleblower Reward Program [https://www.natlawreview.com/article/cftc-whistleblower-program-annual-report-reveals-active-year-and-success-enlisting provides whistleblowers with a strong monetary incentive], as well as anti-retaliation protections, for reporting wrongdoing to the CFTC. This includes violations or fraud in connection with: | |||
*Commodity futures | |||
*Commodity options | |||
*[https://www.zuckermanlaw.com/swap-reporting-cftc-whistleblower-lawyers/ Swap trading markets] | |||
*Derivatives | |||
*[https://www.whistleblower.gov/sites/whistleblower/files/2019-06/FCPA%20WBO%20Alert.pdf Foreign corrupt practices] | |||
Approximately 65% of whistleblower cases filed at the CFTC involved charges of commodities fraud, [https://www.zuckermanlaw.com/rewards-and-bounties-for-whistleblowers/market-manipulation-whistleblower-lawyers/ market manipulation schemes] and spoofing. Whistleblower tips to CFTC have helped [https://www.zuckermanlaw.com/cftc_whistleblower_rewards_attorneys/ drive record-level enforcement activity.] | |||
Since 2014, the CFTC has issued more than [https://www.whistleblower.gov/ $120 million in awards] to whistleblowers. The [https://www.zuckermanlaw.com/sp_faq/largest-cftc-whistleblower-awards/ largest CFTC whistleblower awards] to date are $45 million, $30 million, and $10 million. Whistleblower disclosures have enabled the CFTC to recover nearly $1 billion. | |||
'''Contents:''' | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/CFTC_Whistleblower_Program Overview] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/CFTC_Whistleblower_Program#Violations_that_Qualify_for_a_CFTC_Whistleblower_Award Violations that Qualify for a CFTC Whistleblower Award] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/CFTC_Whistleblower_Program#Whistleblowers_Will_Continue_to_Drive_Increased_CFTC_Enforcement_Activity Whistleblowers Will Continue to Drive Increased CFTC Enforcement Activity] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/CFTC_Whistleblower_Program#Anonymous_Whistleblowing_to_the_CFTC Anonymous Whistleblowing to the CFTC] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/CFTC_Whistleblower_Program#CFTC_Whistleblower_Awards CFTC Whistleblower Awards] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/CFTC_Whistleblower_Program#Protections_Against_Whistleblower_Retaliation Protections Against Whistleblower Retaliation] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/CFTC_Whistleblower_Program#CFTC_Prohibits_.E2.80.9CGag_Clauses.E2.80.9D_in_Confidentiality_and_Employment_Agreements CFTC Prohibits “Gag Clauses” in Confidentiality and Employment Agreements] | |||
='''[[False Claims Act]]'''= | |||
The [https://www.zuckermanlaw.com/false-claims-act-resources-corporate-whistleblowers/ False Claims Act] authorizes whistleblowers, also known as '''qui tam “relators,”''' to bring suits on behalf of the United States against the false claimant and '''obtain a portion of the recovery,''' otherwise known as a relator share. The phrase ''“qui tam”'' is short for ''qui tam pro domino rege quam pro se ipso in hac parte sequitur'', meaning “who [''qui''] sues in this matter for the king as well as [''tam''] for himself.” ''U.S. ex rel. Bogina v. Medline Indus., Inc.,'' 809 F.3d 365, 368 (7th Cir. 2016). | |||
The False Claims Act also [https://www.zuckermanlaw.com/false-claims-act-whistleblower-retaliation-lawyer/ protects whistleblowers from retaliation]. | |||
The [https://www.zuckermanlaw.com/sp_faq/qui-tam-lawsuit/ qui tam provisions of the False Claims Act] have been enormously effective in enlisting private citizens to combat fraud against the government. Qui tam whistleblowers, also known as relators, have enabled the government to recover more than '''$60 billion'''. In fiscal year 2017 alone, qui tam actions brought by whistleblowers resulted in '''$3.4 billion in settlements''' and judgments, and the government paid '''$392 million in whistleblower awards''' to False Claims Act whistleblowers. | |||
'''Contents:''' | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#Types_of_False_Claims_Prohibited_by_the_False_Claims_Act Types of False Claims Prohibited by the False Claims Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#False_Claims_Act_First-to-File_Bar False Claims Act First-to-File Bar] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#Filing_a_False_Claims_Act_Qui_Tam_Case_Under_Seal Filing a False Claims Act Qui Tam Case Under Seal] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#False_Claims_Act_Fraud_Violations False Claims Act Fraud Violations] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#Materiality_and_the_False_Claims_Act Materiality and the False Claims Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#False_Claims_Act_Statute_of_Limitations False Claims Act Statute of Limitations] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#False_Claims_Act_Authorizes_Treble_Damages False Claims Act Authorizes Treble Damages] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#Pleading_Qui_Tam_False_Claims_Act_Case_in_Detail Pleading Qui Tam False Claims Act Case in Detail] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#False_Claims_Act_Public_Disclosure_Bar False Claims Act Public Disclosure Bar] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#Scienter_Under_the_FCA_Does_Not_Require_Proof_of_Specific_Intent Scienter Under the FCA Does Not Require Proof of Specific Intent] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/False_Claims_Act#The_False_Claims_Act_Protects_Whistleblowers_from_Retaliation The False Claims Act Protects Whistleblowers from Retaliation] | |||
='''[[IRS Whistleblower Reward Program]]'''= | |||
The IRS estimates that the United States loses more than [https://www.irs.gov/pub/irs-soi/p1415.pdf $450 billion] per year to tax evasion. To combat tax fraud, Congress enacted legislation providing robust incentives for whistleblowers to report tax fraud. Under [https://zuckermanlaw.com/wp-content/uploads/2020/06/26-USC-%C2%A7-7623.pdf 26 USC § 7623(b)], the IRS is '''''required''''' '''to issue an award to tax whistleblowers of 15% to 30%''' of proceeds collected from tax fraud or tax underpayments if: | |||
* the whistleblower provides a tip that the <u>IRS decides to take action</u> on (a whistleblower cannot force the IRS to act on a tip); | |||
* the amount in dispute (the tax underpayment, including interest and penalties) <u>exceeds $2 million</u> (if the taxpayer is an individual, his or her gross income must exceed $200,000 for at least one of the tax years in question); and | |||
* the <u>IRS collects tax underpayments</u> resulting from the action (including any related actions). | |||
In enacting the IRS whistleblower bounty legislation, Congress provided mandatory awards to tax whistleblowers for high-quality tips. Section 7623(b) suggests a focus on '''large-scale tax fraud''' in that Congress removed the previous cap of $10 million on IRS whistleblower awards. Thus, if a whistleblower meets the requirements above, the whistleblower may be able to receive a substantial payout. | |||
On July 2, 2019, the Taxpayer First Act was signed into law. The law provides tax whistleblowers, among other things, [https://www.zuckermanlaw.com/irs-tax-fraud-whistleblower-protection-law/ significant protections against retaliation]. Read more about the tax whistleblower protection law [https://www.zuckermanlaw.com/irs-tax-fraud-whistleblower-protection-law/ here]. | |||
='''[[Anti-Money Laundering Whistleblower Program]]'''= | |||
On January 1, 2021, Congress enacted the Anti-Money Laundering Act (AMLA), a comprehensive reform of anti-money laundering laws. Recognizing the [https://www.zuckermanlaw.com/top-reasons-why-sec-whistleblower-program-successful/ success of whistleblower incentives in combatting fraud] against the government, securities fraud, tax fraud, commodities fraud, and other types of fraud, Congress included in the AMLA a provision that incentivizes whistleblowers to report violations of the anti-money laundering laws to the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). | |||
='''[[Whistleblower Protection Laws]]'''= | |||
'''The Dodd-Frank Act, which created the SEC Whistleblower Program, prohibits retaliation against whistleblowers for raising concerns about potential securities law violations'''. Remedies for a prevailing whistleblower include reinstatement, double back pay, litigation costs, expert witness fees, and attorneys’ fees. | |||
'''Retaliation for whistleblowing to the SEC is also proscribed by the whistleblower protection provision of the Sarbanes-Oxley Act (“SOX”).''' The remedies are similar to those under Dodd-Frank, but SOX also includes special damages, such as emotional distress, impairment of reputation, and other noneconomic harm resulting from retaliation. Click [https://www.zuckermanlaw.com/sec-whistleblower-retaliation-tools-to-combat-retaliation-and-protect-sec-whistleblowers/ here] for information about additional options to combat retaliation against SEC whistleblowers. | |||
'''Contents:''' | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws Sarbanes-Oxley] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Dodd-Frank_Act Dodd-Frank Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Differences_between_SOX_and_Dodd-Frank_Acts Differences between SOX and Dodd-Frank Acts] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Section_1985_Haddle_Remedy_for_Conspiracy_to_Interfere_with_Civil_Rights_of_SEC_Whistleblowers Section 1985 Haddle Remedy for Conspiracy to Interfere with Civil Rights of SEC Whistleblowers] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#RICO_Prohibition_Against_SEC_Whistleblower_Retaliation RICO Prohibition Against SEC Whistleblower Retaliation] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Whistleblower_Retaliation_Can_Give_Rise_to_Breach_of_Contract_Claim Whistleblower Retaliation Can Give Rise to Breach of Contract Claim] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Defense_Contractor_Whistleblower_Protection_Act Defense Contractor Whistleblower Protection Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Taxpayer_First_Act Taxpayer First Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Whistleblower_Protection_Act Whistleblower Protection Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Energy_Reorganization_Act Energy Reorganization Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Wendell_H._Ford_Aviation_Investment_and_Reform_Act_for_the_21st_Century Wendell H. Ford Aviation Investment and Reform Act for the 21st Century] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Surface_Transportation_Assistance_Act Surface Transportation Assistance Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Consumer_Financial_Protection_Act Consumer Financial Protection Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Federal_Railroad_Safety_Act Federal Railroad Safety Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#National_Transit_Systems_Security_Act National Transit Systems Security Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Consumer_Product_Safety_Improvement_Act Consumer Product Safety Improvement Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Food_Safety_Modernizations_Act Food Safety Modernizations Act] | |||
#[https://whistleblower-rewards-and-protections-wiki.zuckermanlaw.com/index.php/Whistleblower_Protection_Laws#Criminal_Antitrust_Anti-Retaliation_Act Criminal Antitrust Anti-Retaliation Act] | |||
='''Did you know ... '''= | |||
*Whistleblower awards range from '''between 10% and 30% of the money collected''' when the sanctions exceed $1 million. | |||
*The SEC Whistleblower Program allows a whistleblower to '''submit a tip anonymously''' to the SEC if represented by an attorney. | |||
*75% of SEC whistleblower award recipients in FY 2021 raised their concerns internally to supervisors, compliance personnel, or through internal reporting channels before reporting to the SEC. Most whistleblowers can report directly to the SEC. Compliance personnel, internal auditors, and company officers must meet certain requirements before reporting to the SEC. | |||
*Since the inception of the SEC Whistleblower Program, the SEC has received more than '''52,400 whistleblower tips''' and awarded approximately '''$1.2 billion to 233 individuals.''' | |||
*Providing information to the SEC in an ongoing investigation can qualify for an award. Of the whistleblowers who received awards in FY 2021, approximately 56% provided [https://www.zuckermanlaw.com/sp_faq/original-information-eligible-award-sec-whistleblower-program/ original information] that caused staff to open an investigation or examination, and approximately 44% received awards because their original information significantly contributed to an already existing investigation or examination. | |||
*A whistleblower can qualify for an award without being a current or former company insider. Whistleblowers can obtains awards for providing independent analysis of public information. | |||
*From FY 2012 to FY 2021, the number of whistleblower tips submitted to the SEC has grown by approximately 300%. | |||
*The '''SEC stands firm against so-called "gag clauses"''' in confidentiality, severance, and other employment-related agreements. This type of prohibition is critical to the success of any whistleblower program because companies often use overly broad confidentiality agreements to silence and punish whistleblowers. But whistleblowers should not disclose privileged information and should seek advice about lawful means of gathering evidence. | |||
*In FY 2021, the most common violations reported by SOX whistleblowers were Manipulation (25%), Corporate Disclosures and Financials (16%), Offering Fraud (16%), Trading and Pricing (6%), and Initial Coin Offerings and Cryptocurrencies (6%). | |||
*In FY 2021, SEC received tips from individuals in 99 foreign countries, as well as from every state in the United States and the District of Columbia. And approximately 20% of the whistleblowers that received awards in FY 2021 were based outside of the United States. | |||
== Getting started == | == Getting started == | ||