Whistleblowers serve a great service to the American Taxpayer and the
future of the United States. Whistleblowers are on the front-lines
battling the injustice of unethical managers, owners, and Government
officials. Without Whistleblowers, billions of dollars of fraud, waste,
and abuse would go unnoticed and the American Taxpayers would be the
ones paying for it. According to a PricewaterhouseCoopers study,
whistleblowers uncovered 43% of fraud, and law enforcement and auditors
combined uncovered 22% of corporate fraud. As previously reported in “Whistleblower Payouts Could Have Reached $252 Billion in 2013,” the United States Government could have recover $840 billion in fraud in 2013.
In order to uncover the maximum amount of fraud possible, Lawmakers,
Corporations, Law Enforcement, Auditors, Department of Justice, and
Whistleblowers need to work as one to help ensure that the American
Taxpayers are no getting cheated.
“One Team, One Fight”
Monday, May 26, 2014
Tuesday, April 29, 2014
Whistleblowers: Show Me the Money!
This post is a 2nd in a series of blogs on the book "The
Whistleblower's Handbook" by Stephen Kohn. The 2nd chapter of the book
is called "Follow the Money" or as I like to call it SHOW ME THE MONEY!
Kohn outlines the four qui tam laws that provide financial incentives
to whistleblowers, which I have covered in a previous post "Whistleblower Programs with Monetary Awards."
According to the "False Claims Act Correction Act of 2008," dated September 25, 2008, a great deal of fraud would go unnoticed absent the assistance of whistleblowers. Complex economic wrongdoing cannot be detected or deterred effectively without the help of those who are intimately familiar with it. Law enforcement will always be outsiders to organizations where fraud is occurring. They will not find out about such fraud until it is too late, if at all. When law enforcement does find out about such fraud, it is very labor intensive to investigate. Fraud is usually buried in mountains of paper or digital documents. It is hidden within an organization. Many different people within an organization, in multiple offices, divisions, and corporate capacities, may have participated in the illegality. Because of the complex nature of economic crime and the diffuse nature of business environments, it may not be apparent, perhaps for years, that malfeasance is afoot. By then, victims will have been hurt, records and witnesses will have disappeared, and memories will have faded Given these facts, insiders who are willing to blow the whistle are the only effective way to learn that wrongdoing has occurred. Information from insiders is the only way to effectively and efficiently piece together what happen and who is responsible. Insiders can provide invaluable assistance during an investigation by identifying key records and witnesses, interpreting technical or industry information, providing expertise, and explaining the customs and habits of the business or industry. Help from an insider can save time and expense for both law enforcement and putative defendants by focusing the investigation on relevant areas. Because of the valuable information brought by insiders, it is no surprise that Government officials state: ‘Whistleblowers are essential to our operation. Without them, we wouldn’t have cases.’
Question: How do you know if you have a case under the False Claims Act?
One Simple Answer: Does the taxpayer on the hook for any of the costs that may be incurred for any misconduct you have identified. As reported on in a recent post "Whistleblower Payouts Could Have Reached $252 billion in 2013," estimated annual fraud losses of among companies in the United States is $840 billion. This means that fraud is all around us...time to rat out your company and save money for the taxpayers and cash in a fat check yourself!
According to the "False Claims Act Correction Act of 2008," dated September 25, 2008, a great deal of fraud would go unnoticed absent the assistance of whistleblowers. Complex economic wrongdoing cannot be detected or deterred effectively without the help of those who are intimately familiar with it. Law enforcement will always be outsiders to organizations where fraud is occurring. They will not find out about such fraud until it is too late, if at all. When law enforcement does find out about such fraud, it is very labor intensive to investigate. Fraud is usually buried in mountains of paper or digital documents. It is hidden within an organization. Many different people within an organization, in multiple offices, divisions, and corporate capacities, may have participated in the illegality. Because of the complex nature of economic crime and the diffuse nature of business environments, it may not be apparent, perhaps for years, that malfeasance is afoot. By then, victims will have been hurt, records and witnesses will have disappeared, and memories will have faded Given these facts, insiders who are willing to blow the whistle are the only effective way to learn that wrongdoing has occurred. Information from insiders is the only way to effectively and efficiently piece together what happen and who is responsible. Insiders can provide invaluable assistance during an investigation by identifying key records and witnesses, interpreting technical or industry information, providing expertise, and explaining the customs and habits of the business or industry. Help from an insider can save time and expense for both law enforcement and putative defendants by focusing the investigation on relevant areas. Because of the valuable information brought by insiders, it is no surprise that Government officials state: ‘Whistleblowers are essential to our operation. Without them, we wouldn’t have cases.’
Question: How do you know if you have a case under the False Claims Act?
One Simple Answer: Does the taxpayer on the hook for any of the costs that may be incurred for any misconduct you have identified. As reported on in a recent post "Whistleblower Payouts Could Have Reached $252 billion in 2013," estimated annual fraud losses of among companies in the United States is $840 billion. This means that fraud is all around us...time to rat out your company and save money for the taxpayers and cash in a fat check yourself!
Monday, April 28, 2014
Comprehensive National Whistleblower Protection Law
This blog post will begin a series of posts on the book “The
Whistleblower’s Handbook” by Stephen Martin Kohn. The book is organized
into different rules and checklists that guides an individual on how to
become a whistleblower.
Rule 1 “Understand the Maze” discusses the laws that have been recently passed to protect whistleblowers. Stephen acknowledge a key point that “to this day Congress still has not passed a comprehensive national whistleblower protection law.”
According to the The Obama-Biden Plan:
“Protect Whistleblowers: Often the best source of information about waste, fraud, and abuse in government is an existing government employee committed to public integrity and willing to speak out. Such acts of courage and patriotism, which can sometimes save lives and often save taxpayer dollars, should be encouraged rather than stifled. We need to empower federal employees as watchdogs of wrongdoing and partners in performance. Barack Obama will strengthen whistleblower laws to protect federal workers who expose waste, fraud, and abuse of authority in government. Obama will ensure that federal agencies expedite the process for reviewing whistleblower claims and whistleblowers have full access to courts and due process.”
President Obama has stated that whistleblowers acts save lives and save taxpayers dollars; however, Congress nor the President has passed a comprehensive national whistleblower protection law. According to the National Whistleblower Center, “The absence of a comprehensive National Whistleblower Protection Act has resulted in serious loopholes in protection. This creates major hardship for honest employees who speak the truth to prevent disaster, only to learn that their government has let them down. ” It’s time to act Mr. President and the members of Congress…what are you waiting for? Pass a comprehensive national whistleblower protection law NOW!
Rule 1 “Understand the Maze” discusses the laws that have been recently passed to protect whistleblowers. Stephen acknowledge a key point that “to this day Congress still has not passed a comprehensive national whistleblower protection law.”
According to the The Obama-Biden Plan:
“Protect Whistleblowers: Often the best source of information about waste, fraud, and abuse in government is an existing government employee committed to public integrity and willing to speak out. Such acts of courage and patriotism, which can sometimes save lives and often save taxpayer dollars, should be encouraged rather than stifled. We need to empower federal employees as watchdogs of wrongdoing and partners in performance. Barack Obama will strengthen whistleblower laws to protect federal workers who expose waste, fraud, and abuse of authority in government. Obama will ensure that federal agencies expedite the process for reviewing whistleblower claims and whistleblowers have full access to courts and due process.”
President Obama has stated that whistleblowers acts save lives and save taxpayers dollars; however, Congress nor the President has passed a comprehensive national whistleblower protection law. According to the National Whistleblower Center, “The absence of a comprehensive National Whistleblower Protection Act has resulted in serious loopholes in protection. This creates major hardship for honest employees who speak the truth to prevent disaster, only to learn that their government has let them down. ” It’s time to act Mr. President and the members of Congress…what are you waiting for? Pass a comprehensive national whistleblower protection law NOW!
Tuesday, April 22, 2014
Wall Street Financing Whistleblower
A Wall Street Hedge Fund Manager agreed to pay a former Herbalife
executive turned whistleblower $3.6 million if the executive lost his
job after whistleblowing. The agreement
between the Hedge Fund Manager and the Herbalife whistleblower states
that the whistleblower will be reimbursed for lost wages and benefits.
According to ABC News, the Hedge Fund Manger, known for his “short”
positions, stands to make $1 billion if the price of Herbalife’s stock
collapses. For those who are not aware of a short position, an investor
will make more money if the stock price falls. Heralife (HLF) stock
currently sits at $58 and has 25 million shares shorted or 35% of
Heralife’s shares. The Head Fund Manager, Bill Ackman, claims that the
company is operating in violation of Chinese Law and operates much like a
pyramid scheme. In December 2012, Acman took a $1 billion short against
Heralife.
Hedge Fund Managers paying whistleblowers to disclose fraud should put Fortune 500 companies on notice that reporting fraud is the new Golden Nugget for Wall Street. I’ll sure this is not the last time we see Wall Street paying whistleblowers to rat on their companies.
Related Links: http://abcnews.go.com/Blotter/bill-ackmans-secret-deal-herbalife-whistleblower/story?id=23415501
http://nypost.com/2014/02/28/ackman-to-expose-herbalife-fraud-in-china-on-march-11/
http://finance.yahoo.com/q/ks?s=HLF+Key+Statistics
Hedge Fund Managers paying whistleblowers to disclose fraud should put Fortune 500 companies on notice that reporting fraud is the new Golden Nugget for Wall Street. I’ll sure this is not the last time we see Wall Street paying whistleblowers to rat on their companies.
Related Links: http://abcnews.go.com/Blotter/bill-ackmans-secret-deal-herbalife-whistleblower/story?id=23415501
http://nypost.com/2014/02/28/ackman-to-expose-herbalife-fraud-in-china-on-march-11/
http://finance.yahoo.com/q/ks?s=HLF+Key+Statistics
Saturday, April 19, 2014
Key Elements of a Successful Whistleblower Case
What are the key elements of any successful whistleblower
case? What cases is the Department of
Justice willing to pursue? The two key
elements of a Qui Tam whistleblower lawsuit is: 1) what harm has been done to
the United States Government, and 2) what evidence does the whistleblower have
to support their claims.
The amount of money the United States Government can
recover in the whistleblower lawsuit is one of the critical factors of a successful
whistleblower case. For example, the Department
of Justice intervened on the Qui Tam lawsuit against Johnson & Johnson and
recovered $149 million to settle kickback allegations.
The second critical factor is the evidence the
whistleblower can provide the United States Government to support their
allegations. For example, in a health care fraud case, the whistleblower
provided first-hand knowledge of various ways the company deliberately sought
to increase billings by submitting claims in violation of federal guidelines. The best documents that a whistleblower can
provide are ones that show that fraud was committed, that the fraud was
intentional, and that the fraud was also widespread throughout the
company. In addition, the whistleblower
should provide witnesses that support their allegations, specifically, names,
titles and address of the witnesses.
Wednesday, April 16, 2014
False Claims Act Cases Recover $3.8 Billion in 2013
The Justice Department best defense against fraud is Qui Tam civil lawsuits under the False Claims Act. In
2013, the Justice Department recovered $3.8 billion in settlements and
judgments involving fraud against the United States Government. The number of lawsuits soared to 752, and was the second largest annual recovery under the False Claims Act since January 2009. In addition, Whistleblowers were awarded $345 million under the False Claims Act.
The largest recoveries under the False Claims Act related to heath care fraud, which reached $2.6 billion. The
False Claims Act is the United States Government primary civil remedy
to redress false claims for government funds and property under
government contracts, as well as under government programs. In
1986, Congress strengthened the False Claims Act by increasing
incentives for whistleblowers to file lawsuits on behalf of the
government, which has led to more investigations and greater recoveries.
The highest risks area in the Government that results in the highest recoveries is health care fraud. No wonder why my doctor visit costs over $1,000. The biggest risk areas within the health care field relates to pharmaceutical and medical devices. Doctors,
Accountants, Office Managers in the health care industry, fraud is
everywhere…rat on your bosses and co-workers and make millions. For examples of successful Health Care Whistleblower cases, read my last blog “Whistleblowing on Health Care Fraud.”
Monday, April 14, 2014
Whistleblowing on Health Care Fraud
This will be the start of a series of blogs of how to identify fraud and whistleblow on your company, co-workers, and bosses. A Whistleblower is defined as one who reveals something covert or who informs against another. A Whistleblower has a lot to lose and also a lot to gain (if you do it right), if you reveal fraud that is going on in your company. Based on last weeks blog, there is an estimated annual fraud losses of more than $840 billion among
organizations in the United States. As a key employee at your company, you may be witnessing fraud everyday and may or may-not know it is occurring. ReportMyCompany.com is a site that will help potential Whistleblowers gain the knowledge of what is consider fraud under the False Claims Act, IRS, and SEC.
The first case study that I will discuss will be on a health care Whistleblower that was awarded million in a Qui Tam lawsuit under the False Claims Act. Don't just sit by and watch your boss commit fraud.
United States vs. Winter Park Urology Associates PA:
Summary of Case: Qui Tam action by Whistleblower to recover damages and civil penalties arising from Defendants' actions in violating the False Claims Act. Defendants knowingly presented or caused to be presented numerous false or fraudulent claims for payment or approval to federal healthcare programs; and knowingly made, used, or caused to be made or used false records or statements to get false or fraudulent claims paid or approved.
The first case study that I will discuss will be on a health care Whistleblower that was awarded million in a Qui Tam lawsuit under the False Claims Act. Don't just sit by and watch your boss commit fraud.
United States vs. Winter Park Urology Associates PA:
Summary of Case: Qui Tam action by Whistleblower to recover damages and civil penalties arising from Defendants' actions in violating the False Claims Act. Defendants knowingly presented or caused to be presented numerous false or fraudulent claims for payment or approval to federal healthcare programs; and knowingly made, used, or caused to be made or used false records or statements to get false or fraudulent claims paid or approved.
Whistleblower's Job Title: Director and Department Manager of Health Care Company.
Whistleblower's Knowledge: First-hand knowledge of various ways the company deliberately sought to increase billings by submitting claims in violation of federal guidelines. The health care company routinely submitted claims for tests that were not medically necessary and not properly documented in the medical records. As a result, the health care company received millions of dollars from Medicare and other federal healthcare program that it was not entitled to receive.
Violations Under the False Claims Act:
(1) Knowingly presented or caused to be presented numerous false claims for payment or approval.
(2) Knowingly made, used, or caused to be made or used, false records or statements material to false or fraudulent claims, and to get false or fraudulent claims paid or approved.
(3) Knowingly made, used, or caused to be made or used, false records or statements material to an obligation to pay or transmit money or property to the Government, or conceal, avoid, or decrease an obligation to pay or transmit money or property to the Government.
(4) Knowingly concealed or knowingly and improperly avoided or decreased an obligation to pay or transmit money or property to the Government.
(5) Conspired to commit the above acts, and to defraud the Government by getting false or fraudulent claims allowed or paid.
Whistleblower Award: Up to 30 percent of the proceeds of the action or settlement of the claims. In addition, the Whistleblower was made whole for his unlawful termination, including reinstatement, two times the amount of back pay, interest on the back pay, and compensation for special damages. Also, the Whistleblower was awarded all costs and expenses incurred, including reasonable attorneys' fees.
Related Links: http://www.bizjournals.com/orlando/blog/2013/09/20-million-whistleblower-lawsuit.html?page=all
http://www.wftv.com/news/news/local/winter-park-medical-practice-accused-fraud/nFdSy/
http://www.nytimes.com/2010/02/26/us/26radiation.html?pagewanted=all&_r=0
Friday, April 11, 2014
Whistleblower Payouts Could Have Reached $252 billion in 2013
According to research conducted by the Association of Certified Fraud
Examiners (ACFE), U.S. organizations lose an estimated 5 percent of
annual revenues to fraud. Based on the Gross Domestic Product for 2013,
this indicates estimated annual fraud losses of more than $840 billion
among organizations in the United States. That means that the maximum payout to Whistleblowers in the United States could have been $252 billion if the Government recovered the $840 billion in fraud.
In 2013, the IRS paid out only 0.2% ($52 million/$252 billion) of the potential amount that the Government could have paid to Whistleblowers. Based on the $840 billion in total potential fraud in the United States, why aren't the IRS's phones ringing off the hook with Whistleblower tips?
According to Forbes.com, "The statistics in the annual report to Congress show that the IRS continues to fail to capitalize on the wealth of detailed information about major tax fraud and abuse that whistleblowers have provided to the IRS program over the past seven years. Hundreds of millions, and likely billions of dollars, could be recovered with whistleblower help if the IRS would act on the information provided rather than sit on it. The IRS whistleblower program has been a major disappointment. The root of the problem is the anti-whistleblower attitude ingrained in the IRS culture – a status quo that no IRS commissioner has attempted to change, leaving Senator Chuck Grassley (R-IA) as the primary government champion to prod the IRS to work with whistleblowers."
Sen. Chuck Grassley, R-Iowa, announced Thursday he will create the Senate Whistleblower Caucus to ensure protections for federal employees exposing wrongdoing at their agencies are being enforced. Good for you Sen Grassley! Why not create protection for all Whistleblowers that report wrongdoing?
"It is time to clear the air, punish the guilty and protect the whistleblowers."-Tony Leon
Related Links:
http://www.acfe.com/rttn-archive.aspx
http://abcnews.go.com/Politics/wireStory/irs-paid-53-million-whistleblowers-2013-23198128
http://www.forbes.com/sites/erikakelton/2014/04/08/irs-cheats-taxpayers-by-ignoring-whistleblowers/
In 2013, the IRS paid out only 0.2% ($52 million/$252 billion) of the potential amount that the Government could have paid to Whistleblowers. Based on the $840 billion in total potential fraud in the United States, why aren't the IRS's phones ringing off the hook with Whistleblower tips?
According to Forbes.com, "The statistics in the annual report to Congress show that the IRS continues to fail to capitalize on the wealth of detailed information about major tax fraud and abuse that whistleblowers have provided to the IRS program over the past seven years. Hundreds of millions, and likely billions of dollars, could be recovered with whistleblower help if the IRS would act on the information provided rather than sit on it. The IRS whistleblower program has been a major disappointment. The root of the problem is the anti-whistleblower attitude ingrained in the IRS culture – a status quo that no IRS commissioner has attempted to change, leaving Senator Chuck Grassley (R-IA) as the primary government champion to prod the IRS to work with whistleblowers."
Sen. Chuck Grassley, R-Iowa, announced Thursday he will create the Senate Whistleblower Caucus to ensure protections for federal employees exposing wrongdoing at their agencies are being enforced. Good for you Sen Grassley! Why not create protection for all Whistleblowers that report wrongdoing?
"It is time to clear the air, punish the guilty and protect the whistleblowers."-Tony Leon
Related Links:
http://www.acfe.com/rttn-archive.aspx
http://abcnews.go.com/Politics/wireStory/irs-paid-53-million-whistleblowers-2013-23198128
http://www.forbes.com/sites/erikakelton/2014/04/08/irs-cheats-taxpayers-by-ignoring-whistleblowers/
Tuesday, April 8, 2014
How Do You Report Suspected Tax Fraud Activity?
According to IRS.gov, you can whistleblow on wide range of wrongdoings that you may not be aware of, see list below:
1. If you suspect or know of an individual or a business that is not complying with the tax laws on issues such as False Exemptions or Deductions; Kickbacks; False/Altered Document; Failure to Pay Tax; Unreported Income; Organized Crime; or Failure to Withhold.
2. If you suspect someone stole your identity and used your SSN for employment purposes or could use your SSN to file a tax return.
3. If you suspect fraudulent activity or an abusive tax scheme by a tax return preparer or tax preparation company.
4. If you suspect a tax return preparer filed a return or altered your return without your consent and you are seeking a change to your account.
5. If you suspect an abusive tax promotion or promoter.
6. If you suspect misconduct or wrongdoing by an exempt organization or employee plan.
7. If you have information and want to claim a reward.
8. If you suspect you received or are aware of fraudulent IRS e-mails and websites.
After you figure out the category to whistleblow under, you need to choose from one of the eight IRS forms to fill out and mail it in. The IRS said late last week that it paid whistleblowers $53.1 million, down from $125.4 million in 2012. No wonder the IRS has only paid out $53 million in 2013 because the process and Government forms do not make sense. Don't worry...over the next couple of blogs I will walk through the process step by step, so you can do the right thing and whistleblow on an individual or company that is not following the law.
“Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws” ― Plato
“Justice will not be served until those who are unaffected are as outraged as those who are.” ― Benjamin Franklin
Related Links: http://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity%3F
http://www.reuters.com/article/2014/04/07/us-usa-tax-whistleblower-idUSBREA361V920140407
1. If you suspect or know of an individual or a business that is not complying with the tax laws on issues such as False Exemptions or Deductions; Kickbacks; False/Altered Document; Failure to Pay Tax; Unreported Income; Organized Crime; or Failure to Withhold.
2. If you suspect someone stole your identity and used your SSN for employment purposes or could use your SSN to file a tax return.
3. If you suspect fraudulent activity or an abusive tax scheme by a tax return preparer or tax preparation company.
4. If you suspect a tax return preparer filed a return or altered your return without your consent and you are seeking a change to your account.
5. If you suspect an abusive tax promotion or promoter.
6. If you suspect misconduct or wrongdoing by an exempt organization or employee plan.
7. If you have information and want to claim a reward.
8. If you suspect you received or are aware of fraudulent IRS e-mails and websites.
After you figure out the category to whistleblow under, you need to choose from one of the eight IRS forms to fill out and mail it in. The IRS said late last week that it paid whistleblowers $53.1 million, down from $125.4 million in 2012. No wonder the IRS has only paid out $53 million in 2013 because the process and Government forms do not make sense. Don't worry...over the next couple of blogs I will walk through the process step by step, so you can do the right thing and whistleblow on an individual or company that is not following the law.
“Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws” ― Plato
“Justice will not be served until those who are unaffected are as outraged as those who are.” ― Benjamin Franklin
Related Links: http://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity%3F
http://www.reuters.com/article/2014/04/07/us-usa-tax-whistleblower-idUSBREA361V920140407
Monday, April 7, 2014
The Largest Whistleblower Awards Ever Paid Out
The
largest whistleblower payout in United States history was made in the amount of
$167.7 million under the False Claims Act. The
False Claims Act allows private persons to file suit for violations of the
False Claims Act on behalf of the government.
A suit filed by an individual on behalf of the government is known as a
“Qui Tam” action. The whistleblower is entitled
to receive between 15 and 25 percent of the amount recovered by the government
through the qui tam action. In addition
to the False Claims Act, the Internal Revenue Service,
Security and Exchange Commission, and U.S. Commodity Futures Trading Commission have whistleblower programs that offer monetary
awards. For example, the largest payout
under the Internal Revenue Service’s whistleblower program was for $104 million
to a former banker who helped the U.S. Government uncover tax evasion. Also, the biggest whistleblower award under
the Securities and Exchange Commission whistleblower program was paid out $14
million. If you’re hoping to get rich
from the U.S. Commodity Futures Trading Commission whistleblower program don’t
hold your breath, no payouts have yet been paid out to whistleblowers.
Whistleblower Award Program
Rankings:
#1.
“Qui Tam” Provision under the False Claims Act
#2.
Internal Revenue Service
#3.
Security and Exchange Commission
#4.
U.S. Commodity Futures Trading Commission
Sunday, April 6, 2014
Whistleblower Programs with Monetary Awards
This blog with discuss how anyone can report their company by reporting acts of fraud, waste and abuse to Whistleblower Programs that payout huge awards. Follow this blog and learn how to make money doing the right thing.
In the United States there is 4 Whistleblower Programs that award individuals when the Government collects money, some payouts have been over $100 million.
1. Securities and Exchange Commission (SEC)
The Dodd-Frank
Wall Street Reform and Consumer Protection Act, signed into law by President
Obama on July 21, 2010, authorizes the SEC to pay an award to eligible
whistleblowers. You may be eligible for a monetary award if the information you
submit leads to an SEC action that results in monetary sanctions exceeding
$1,000,000.
Related
Link: http://www.sec.gov/about/offices/owb/owb-tips.shtml
2. U.S. Commodity Futures Trading Commission (CFTC)
The
CFTC’s whistleblower program – which was created by the Dodd-Frank Act – allows
for the payment of monetary awards to eligible whistleblowers, and provides
anti-retaliation protections for whistleblowers who share information with or
assist the CFTC. The CFTC will pay
awards to eligible whistleblowers who voluntarily provide us with original
information about violations of the Commodity Exchange Act that lead us to
bring an enforcement action that results in more than $1 million in monetary
sanctions.
3. Internal Revenue Service (IRS)
The
IRS Whistleblower Office pays money to people who blow the whistle on persons
who fail to pay the tax that they owe. If the IRS uses information provided by
the whistleblower, it can award the whistleblower up to 30 percent of the
additional tax, penalty and other amounts it collects.
Related Link: http://www.irs.gov/uac/Whistleblower-Informant-Award
4. “Qui Tam” Lawsuit Under the False
Claims Act (FCA)
The FCA allows private persons to
file suit for violations of the
FCA on behalf of the government. A
suit filed by an individual on behalf of the government is known as a “qui tam”
action, and the person bringing the action is referred to as a “relator.”
If the government intervenes in the
qui tam action, the relator is entitled to receive between 15 and 25 percent of
the amount recovered by the government through the qui tam action. If the
government declines to intervene in the action, the relator’s share is
increased to 25 to 30 percent.
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