Federal and state laws encourage individuals to report fraud through various whistleblower or “qui tam” provisions. These whistleblower statutes offer individuals monetary rewards when the government is able to successfully recover damages in connection with the reported fraud.
Kirby McInerney can protect your interests and guide you through the whistleblower process by drawing upon its more than six decades of experience litigating cases involving corporate misconduct and financial fraud. The firm has recovered over $1 billion in claims arising from the financial crisis.
If you have information regarding securities and commodities fraud, government fraud or other suspicious activity within an organization, contact Kirby McInerney to receive a free confidential claims evaluation.
SEC and CFTC Whistleblower Programs
· The SEC and CFTC Whistleblower programs were created following the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010.
· Individuals who report evidence of federal securities law violations to the SEC may be entitled to receive a financial award from the government. Examples of activities covered by the SEC Whistleblower program include insider trading, financial misstatements, money laundering, thefts and violations of the Foreign Corrupt Practices Act.
· Under the CFTC Whistleblower program, individuals who submit original violations of the Commodity Exchange Act are potentially eligible to receive a financial award. Examples of activities covered by the CFTC Whistleblower program include price manipulation, disseminating false information into the market, and front-running positions in the commodities, currency, futures, and derivatives markets.
· If the CFTC or SEC successfully recovers more than $1 million in monetary sanctions, Whistleblowers are entitled to receive between 10% and 30% of the recovered amount.
· Whistleblowers can file tips anonymously and the Dodd-Frank Act includes anti-retaliation provisions for individuals who provide information to the SEC or CFTC.
False Claims Act
· Federal and state false claims acts provide private citizens recourse to report fraud that costs American taxpayers millions of dollars each year. With increased legal protection and monetary incentives, more and more everyday citizens are coming forward to report fraud.
· False claim actions are brought by the government to recover damages incurred where companies or individuals overbill the government, file fraudulent claims to receive improper payments, or falsify records to avoid paying amounts owed to the government. The federal and many state false claims acts contain anti-retaliation provisions.
· Kirby McInerney has achieved significant success in prosecuting false claim act actions on behalf of state and local governments. The firm has recovered over $225 million for the New York and Iowa Medicaid programs through litigation related to pharmaceutical price manipulation. Additionally, the firm has successfully represented whistleblowers in relation to fraudulent customs avoidance, government contracting, and medical billing schemes.
IRS Whistleblower Program
· Individuals who report evidence of tax fraud and other misconduct to the IRS are eligible to recover significant monetary awards. Whistleblowers are eligible to receive mandatory awards between 15% and 30% of recovered amounts when the IRS successfully recovers more than $2 million from corporations (or from an individual earning more than $200,000). If the IRS recovers less than $2 million (or from an individual earning less than $200,000), Whistleblowers are eligible for discretionary awards of up to 15% the recovered amount.