Any employee who sees their company engaging in any kind of misconduct, especially if it is defrauding the government of funds becomes a whistleblower by reporting the alleged fraud.

What is a Whistleblower?

As the key witnesses to their companies’ fraudulent actions, whistleblowers are a vital part in preventing the government from being defrauded.

A whistleblower is technically called a relator. Whistleblowers can include employees, former employees, competitors, or contractors of a company who witness some form of fraud or misconduct that collects government money. This can be in the form of Medicare or Medicaid funds or another type of contract work that a company may do for the government, such as a military contractor.

However, whistleblowers aren’t just those who report fraud committed by contractors against the government. Whistleblowers can also be federal government employees, who are protected by the Whistleblower Protection Enhancement Act (WPEA).

Corporate whistleblowers are protected by the Sarbanes Oxley Act of 2002. In addition, there are a number of of international of organizations that have adopted their own whistleblower laws, such as the World Bank, to encourage employees to make a claim.

Whistleblower Law and Protection

The False Claims Act, which is the law that governs whistleblowers who report fraud committed against the government, originated during the Civil War and was signed by President Abraham Lincoln to protect against government fraud. This policy has since been amended several times to adapt to current issues.

When whistleblower lawsuits are filed, they are sent directly to the Justice Department to be reviewed. During this time, they are kept confidential while the government determines if the claims are valid, and if they want to participate in the lawsuit or not. Under whistleblower law, the identity of the whistleblower will be protected, to prevent retaliation or harassment.

Potential whistleblowers should know that under the whistleblower law, that it is illegal for companies to threaten or harass whistleblowers in any way.

Additionally, whistleblower lawsuits cannot be based on public information, and that the whistleblower must be the first to make the claims. In addition, if a second whistleblower comes forward with more information, the first whistleblower will be the one recognized by the court.

There are a number of other whistleblower laws which are designed to protect employees from reporting their companies without fear of retaliation.  This is to encourage individuals to file their own whistleblower lawsuits, so they should consult a specialized whistleblower lawyer as soon as possible to see if they qualify for legal action.

In exchange for their part as a whistleblower, the individual will typically be awarded 15 percent to 30 percent of whatever settlement the whistleblower lawsuit may recover.

Due to the efforts of whistleblowers and their bravery to come forward, taxpayers have recovered billions from Medicare fraud, financial fraud, flowed pharmaceutical products, tax fraud, government contracts, and hospital or physician kickbacks.