Although the majority of fraud cases are handled by the Department of Justice at a federal level, states also play an important role in identifying and prosecuting instances of fraud. Many states have their own False Claims Acts that allow citizens to become whistleblowers and report fraudulent activities. Although many of these state-level false claims …
SEC is Planning on Expanding Regulations of SPACs
On March 30, 2022, the SEC, in a 3-1 vote by its commissioners divided along political lines, approved the issuance of proposed rules regarding Special Purpose Acquisition Companies (SPACs). SPACs first began to emerge in the 1990s as an alternative to blank check companies regulated under the Securities Act. These have recently risen in popularity …
The Motor Vehicle Safety Act’s First Whistleblower Reward
The Motor Vehicle Safety Act Whistleblower Program is one of the newest whistleblower laws in the United States. It is so recent that it was approved in 2015 and it is still technically a work in progress since the required guidelines are still being developed right now. This Act allows employees and contractors of motor-vehicle …
Three Noteworthy IRS Tax Recoveries from 2021
The Internal Revenue Service (IRS) had a number of successful enforcement actions in 2021. The IRS Whistleblower Program is currently undergoing understaffing and is experiencing long delays in processing whistleblower claims and in paying out rewards for successful enforcement actions. Legislators are looking to improve the program to mitigate these issues. Nevertheless, in 2021, the …
Three Notable FCPA Recoveries from 2021
Under the Foreign Corrupt Practices Act (‘FCPA’) it is unlawful and prohibited for a person or a company to offer, pay or promise to pay bribes to foreign officials to assist in obtaining or retaining business. With amendments made to the FCPA in 1998, these provisions now not only apply to U.S. citizens but also …
Top 3 Whistleblower Rewards from 2021
2021 was a year of large whistleblower awards. Many of these came from the SEC Whistleblower Program. The CFTC Whistleblower Program also awarded substantial rewards to whistleblowers. The following is a list of the top three biggest whistleblower rewards for 2021: CFTC Whistleblower award of $200 million – The CFTC awarded almost $200 million to …
SCOTUS to Decide whether the Government can Dismiss a Qui Tam Relator’s Suit after Initially Declining to Intervene
Under the federal False Claims Act, whistleblowers can initiate actions on behalf of the government to recover monies that have been paid fraudulently. Although whistleblowers can initiate these actions, the federal government then takes the reins and carries out an investigation to see if it will be interested in the matter. After investigating, the federal …
The Top Three SEC and CFTC Recoveries of 2021
The year 2021 ended with hundreds of million dollars in whistleblower rewards under the SEC and CFTC whistleblower programs. Both agencies have brought many blockbuster enforcement actions against crypto fraudsters over the past couple of years. They have both started making going after crypto-fraudsters a priority as the number of digital currencies continues to grow. …
Whistleblower Experts Discuss the Importance of Whistleblowing at The Hague, the City of Peace and Justice
On May 25, 2022, the Executive Director of the National Whistleblower Center (NWC), Siri Nelson, met with Mark Worth, a WNN reporter, and also, the Executive Director of Whistleblowing International and the European Center for Whistleblower Rights, to talk about whistleblower rights at The Hague in the Netherlands. The Hague is known worldwide as “the …
US House Committee on Financial Services Discusses How to Improve the Anti-Money Laundering Whistleblower Program
Established in 2021, the Anti-Money Laundering Act of 2020 (AMLA) contains a whistleblower provision designed to incentivize individuals to report any money laundering scheme they come across to the Department of Treasury. This is done by awarding whistleblowers up to 30% of any money recovered from a successful enforcement action. Unfortunately, it does not have …