Whistleblowing in the Corporate and Public Sectors
Federal fraud is a growing epidemic, that the authorities are aware of, but unfortunately can do little to prevent, without the aid of the public. It would appear that until recently these people, usually federal employees themselves, did not have the inclination to blow the whistle on their colleagues, either in fear of the backlash that it might draw on themselves, and also there was no financial incentive or recognition in doing so.
Since the revamping of federal legislation, which began back in the mid 1980’s and has been constantly upgraded since then, there are now huge rewards available for federal employees who are prepared to take action in exposing any form of fraud being perpetrated against the federal government.
Under the current federal law, a person who provides information suggesting that a private individual or a business has provided false information to either obtain money from the federal government or to defraud money from the federal government, then the whistleblower is entitled to file a claim and may be liable to receive a reward running between 15% and 30% of the monies recovered by the federal government.
The legislation, under its title “The False Claims Act” is a unique federal law that allows citizens with evidence of fraud against the federal government to sue, on behalf of the government. This means that virtually anyone who receives money from the federal government, pays money to the federal government, or helps someone else get money from the federal government, theoretically can bend the rules and violate the False Claims Act.
In addition to any rewards distributed, under the False Claims Act, any employee who is discharged, demoted, harassed or otherwise discriminated against because of lawful acts of the employee in furtherance of an action under the Act is entitled to receive compensation and protection.
Such relief may include reinstatement, double back pay, and compensation for any special damages including litigation costs and attorneys fees.
Federal authorities have taken full benefits from the legislation and the increased cooperation they are receiving from their employees.
Since these laws began to come into effect way back in 1986 the federal government has recovered over $2 Billion stolen by fraud, and brought to light as a result of actions by whistleblowers. The government, in return, have distributed to date around $340 million dollars to informants as a reward for their cooperation.
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