STOP WRONGDOING
WHISTLEBLOWINGThe Who, What, Why, and How
WHAT IS WHISTLEBLOWING?
Whistleblowing is the act of alerting law enforcement of fraud. The government understands there can be many negative consequences to whistleblowing and so has set up certain formal channels to alert the government and provide for a financial incentive if the government ultimately recovers.
WHO CAN BE A WHISTLEBLOWER?
While traditionally thought of as company insiders, whistleblowers come in many forms and from a variety of backgrounds. Their one unifying characteristic is they see something that is not right and want it to stop. Whistleblowers can be insiders, competitors, clients, or even just enterprising citizens. If you see fraud, you can stop it by blowing the whistle.
WHY BLOW THE WHISTLE?
While there are financial incentives to whistleblowing, the ultimate motivation for most whistleblowers is doing the right thing. They see fraud; they see the people who are being hurt; and they want that fraud to stop and the fraudsters to never do it again. Whistleblowing is not an easy decision. Whistleblowers can often face retaliation and other negative consequences, which is why there are financial incentives and numerous protections available.
HOW TO BLOW THE WHISTLE
While each program is different — some require an attorney and some do not — you only have one opportunity to make a first impression with the government. You want a seasoned eye who can refine your message, highlight the important details, and present the fraud in a way that will be heard. And you want someone who knows the people you want to listen.
GOVERNMENT FRAUD – FCA QUI TAMS
WHAT IS A FALSE CLAIM?
The United States spends money in a myriad of ways and gets defrauded in almost of all of them. Any request or demand for money, either directly or indirectly from the United States, is a claim under the False Claims Act. Each case is unique but common whistleblower claims include:
- Healthcare Fraud, including Medicare and Medicaid Fraud
- Contractor Fraud
- Financial and Investment Fraud
- Procurement Fraud
Any individual or company that causes the government to improperly pay out money can be responsible, whether they directly sought the money or caused someone else to improperly get money.
I SEE FRAUD. WHAT NEXT?
A False Claims Act action allows you to “blow the whistle” by bringing a lawsuit on behalf of the government against those perpetrating the fraud. You can file a complaint in federal court, under seal (not public), to alert the Department of Justice to your claims. You are required to have an attorney to file the complaint. Your decision of which attorney you choose is the most important decision you will make. An experienced attorney can make sure your voice is heard.
Many meritorious fraud claims are not successful because they are not positioned properly. They are not presented to the right people, in the right way, and your voice is not heard.
We know how to position your case so that the government listens. We have the reputation and connections to ensure DOJ listens and investigates the fraud. We know how to frame your case so that it has the highest likelihood of success. We give you the best chance to stay informed as the government’s investigation progresses.
AFTER YOU FILE
Your Interview with DOJ
Once you file, you are known as a relator. The government will conduct a relator interview, where they dig into your allegations and make an initial determination if they believe your allegations have merit.
The Investigation
If DOJ determines your allegations have sufficient merit, they will investigate. This will generally include subpoenas and transcribed interviews. A thorough investigation can often take multiple years, though experienced investigative counsel can often distill key issues and provide assistance to the government to help speed up the process.
Settlement, Suit, or Declination
If DOJ determines your allegations have merit, they will demand a settlement, and, if they cannot achieve one, they will take over your lawsuit (called intervention). If there is a recovery, you are entitled to 15 to 30 percent, which depends on various factors including how helpful you and your attorneys were during the investigation.
If DOJ does not pursue the case, you have the right to pursue the litigation on your own on behalf of the government.
We have been through the process dozens of times. We know how to spot fraud, investigate fraud, and reach a successful resolution. Buffone Law Group can make sure your voice is heard. Reach out today for a free consultation.
SECURITIES FRAUD - SEC TIP
WHAT IS AN SEC TIP?
The SEC conducts investigations into possible violations of numerous types of securities fraud. Among other things, SEC whistleblowers can provide information about:
- Ponzi or pyramid schemes
- Theft or misappropriation of funds or securities
- Insider trading
- Manipulating stock prices
- False or misleading statements about a company
- Fraud related to cryptocurrencies
These are but a few of the types of fraud the SEC routinely investigates. SEC tips routinely come from both company insiders and other individuals who want to do the right thing.
I SEE FRAUD. WHAT NEXT?
The SEC’s Whistleblower Program accepts tips in a number of ways, but it’s important to navigate the process to ensure that you receive any award to which you may be entitled. The SEC’s Whistleblower Program also provides strong protections against retaliation. Contact Buffone Law Group to make sure you protect your rights.
BUFFONE LAW GROUP
We have a trained eye for fraud and can highlight the fraud so the SEC listens. We also know how to file your tip so it does not languish in processing.
AFTER YOU FILE
SEC Filter Team
SEC tips are initially reviewed by a filter team, who then route the tips to the appropriate office. Experienced attorneys can help speed up or bypass this process entirely.
Your Interview with SEC
The SEC will interview you to better understand your tip. A well written tip will help focus this interview and we will help prepare you for the interview so you will be heard.
Can I Stay Anonymous?
Yes, you may remain anonymous, but there are important considerations in choosing to do so. Buffone Law Group can help you make the right decision.
Are There Protections for Whistleblowers?
Yes, there are robust protections, but it is important you contact the SEC before any retaliation occurs. If you believe you have been retaliated against, you have rights—and we can help you protect them.
What If the SEC Recovers?
The SEC pays monetary awards of between 10% and 30% of the total proceeds the SEC collects if the SEC moves ahead based on information provided by a whistleblower if the recovery exceeds $1,000,000. We will help make sure you get what you deserve.
COMMODITIES FRAUD - CFTC TIP
WHAT IS A CFTC TIP?
The Commodity Futures Trading Commission (CFTC) regulates U.S. derivatives markets, including futures, options, and swaps. The CFTC has independent enforcement authority over the Commodity Exchange Act and other CFTC Regulations. Common types of CFTC cases include:
- Fraud, such as improper solicitation, misappropriation of funds, and Ponzi schemes
- Market manipulation
- Trade practice violations
- False statements to the CFTC
The CFTC heavily relies on tips from the public to investigate and prosecute its enforcement cases. Without dedicated individuals, the CFTC would not be able to protect derivatives markets from malfeasance.
I SEE FRAUD. WHAT NEXT?
If you’ve uncovered fraud on the derivatives markets and are considering bringing your information to the authorities, you should make sure you know your rights. To bring a CFTC whistleblower tip, you must be sure to follow the guidelines set out in CFTC Whistleblower Rules. Contact Buffone Law Group to make sure you’re protected.
AFTER YOU FILE
What Happens Next?
After submitting your tip, the CFTC Whistleblower Office may choose to interview you to gain an understanding of the information you’re bringing. We’ll help you prepare and be there with you through the process.
Can I Stay Anonymous?
Yes, under the CFTC’s Whistleblower Rules, individuals may submit a tip anonymously.
Are There Protections for Whistleblowers?
Yes. Employers may not take any action to impede would-be whistleblowers from communicating directly with the CFTC. The Commission’s Rules also provide protections against retaliation against whistleblowers for reporting violations of the CEA. If you have been retaliated against, you have the right to sue in federal court—and we will be there to help you.
Am I Entitled to an Award?
The CFTC pays monetary awards of between 10 and 30 percent to eligible whistleblowers. We will make sure you get what you deserve.
TAX FRAUD
WHAT IS TAX FRAUD?
The IRS is a federal agency tasked with overseeing the United States’ tax policy system. As part of its authority, the IRS is tasked with investigating and enforcing tax law. The IRS needs tips from people like you to help identify tax fraud such as:
- Fake exemptions or deductions
- Kickbacks
- Fake documents
- Failure to pay tax
- Unreported income
You know the tax code is complex, and for every loophole or deduction, someone might be trying to take advantage of the system.
HOW TO FILE AN IRS TIP?
If you’ve seen tax fraud in the workplace or by an individual, you should make sure you know your rights. In order to properly file an IRS tip, you need to follow the rules laid out by the IRS and submit your information to the appropriate authorities. Contact Buffone Law Group to make sure you’re protected.
AFTER YOU FILE
What Happens Next?
After submitting your tip, IRS attorneys may choose to interview you to gain an understanding of the information you’re bringing. We’ll help you prepare and be there with you through the process.
Can I Stay Anonymous?
Yes, you may remain anonymous, but there are important considerations in choosing to do so. Buffone Law Group can help you make the right decision.
Are There Protections for Whistleblowers?
Yes, the Taxpayer First Act provides certain protections for people who blow the whistle against his or her employer. If you believe you have been retaliated against, you have rights—and we can help you protect them.
Am I entitled to an Award?
The IRS pays monetary awards of between 15% and 30% of the total proceeds the IRS collects if the IRS moves ahead based on information provided by a whistleblower. The IRS must pay an award if the amount of fraud identified by the whistleblower exceeds $2,000,000. If the taxpayer is an individual, he or she must have at least $200,000 in gross income. We will help make sure you get what you deserve.
MONEY LAUNDERING - FinCEN TIP
WHAT IS A FinCEN TIP?
As part of the Anti-Money Laundering Act of 2020 (AMLA), the government established within the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) a whistleblower program to blow the whistle on violations of anti-money laundering laws.
Potential whistleblowers may include bank employees or victims of fraudulent schemes and often relate to failures by banks to have effective anti-money-laundering compliance and/or “know your customer” programs.
I SEE FRAUD. WHAT NEXT?
The FinCEN program is the newest whistleblower program and treasury has not yet issued guidance or regulations outlining all aspects of the program, but certain features have been established by statute. Contact Buffone Law Group to make sure you’re protected.
AFTER YOU FILE
What Happens Next?
After submitting your tip, Treasury may choose to interview you to gain an understanding of the information you’re bringing. We’ll help you prepare and be there with you through the process.
Can I Stay Anonymous?
Yes, under FinCEN, individuals may submit a tip anonymously, but they must be represented by an attorney to do so.
Are There Protections for Whistleblowers?
Yes, FinCEN provides protections against retaliation against whistleblowers for reporting violations. If you believe you have been retaliated against, you have rights — and we can help you protect them.
Am I Entitled to an Award?
Under the new FinCEN Whistleblower Program, an eligible whistleblower can receive an award of up to 30% of the net amount of fines or penalties levied against the defendant over $1 million based on information provided by the whistleblower. We will help make sure you get what you deserve.
BANKING FRAUD - FIRREA/FIAFEA TIP
WHAT IS A FIRREA/FIAFEA TIP?
The DOJ has used FIRREA as a primary tool in combating financial fraud over the past ten years—the multi-billion-dollar cases related to residential mortgage-backed securities (RMBS) fraud were all pursued by DOJ as FIRREA cases. Whistleblowers can provide information about:
- Defrauding or attempting to defraud a bank
- Anti-money laundering violations
- Mail and wire fraud
- Making false statements or false entries in books and records
FIRREA’s companion statute, FIAFEA, was created to incentivize insiders to report violations related to federally funded financial institutions.
I SEE FRAUD. WHAT NEXT?
Whistleblower cases under FIAFEA are unique. They are not filed as federal cases as in the FCA, nor are they filed as comparatively informal tips. Instead, the whistleblower serves DOJ with a sworn declaration outlining the evidence and facts supporting the allegations of fraud. To bring a FIAFEA whistleblower tip, you must be sure to follow the guidelines set out in Whistleblower Rules. Contact Buffone Law Group to make sure you’re protected.
AFTER YOU FILE
What Happens Next?
After submitting your tip, DOJ may choose to interview you to gain an understanding of the information you’re bringing. We’ll help you prepare and be there with you through the process.
Can I Stay Anonymous?
Yes, under FIAFEA, individuals may submit a tip anonymously.
Are There Protections for Whistleblowers?
Yes, the FIAFEA statute provides protections against retaliation against whistleblowers for reporting violations. If you believe you have been retaliated against, you have rights — and we can help you protect them.
Am I Entitled to an Award?
A FIAFEA whistleblower may receive a reward of between 20% to 30% of the first $1,000,000 recovered, 10% to 20% of the next $4,000,000 recovered, and 5% to 10% of the next $5,000,000 recovered, up to a maximum of $1.6 million. We will help make sure you get what you deserve.
VEHICLE SAFETY - NHTSA TIP
WHAT IS A NHTSA TIP?
The National Highway Traffic Safety Administration’s (NHTSA) whistleblower program allows whistleblowers to report potential vehicle safety defects, noncompliance with the Federal Motor Vehicle Safety Standards, and violations of the Vehicle Safety Act. Whistleblowers must be an employee or contractor of a motor vehicle manufacturer, part supplier, or dealership.
I SEE FRAUD. WHAT NEXT?
The Motor Vehicle Safety Whistleblower Act is complex, and NHTSA has only issued one whistleblower award, so many nuances of the program are not yet set. Contact Buffone Law Group to make sure you’re protected.
AFTER YOU FILE
What Happens Next?
After submitting your tip, NHTSA may choose to interview you to gain an understanding of the information you’re bringing. We’ll help you prepare and be there with you through the process.
Can I Stay Anonymous?
Yes, under NHSTA, individuals may submit a tip anonymously.
Are There Protections for Whistleblowers?
Yes, The Vehicle Safety Act provides protections against retaliation against whistleblowers for reporting violations. If you believe you have been retaliated against, you must file a complaint with Occupational Health and Safety Administration (OSHA)— and we can help you through the process.
Am I Entitled to an Award?
Under the NHTSA Whistleblower Program, a successful whistleblower is entitled to 10% to 30% of any recovery. We will help make sure you get what you deserve.