Frequently Asked Questions: Whistleblower Claims

Whistleblower claims can be complex and often involve navigating intricate legal systems. You likely have many questions if you are considering reporting fraud or misconduct. Below, we answer some of the most common questions potential whistleblowers ask. Whether you are concerned about your rights, potential rewards, or the process itself, the employment and compensation attorneys at Stueve Siegel Hanson are here to help you understand how whistleblower claims work and what to expect when stepping forward.

What is a Whistleblower?

A whistleblower is an individual who reports illegal, unethical, or fraudulent activities, often occurring within their workplace. These activities can involve anything from healthcare fraud and tax evasion to securities and environmental violations. The goal is to expose wrongdoing and protect public funds, the environment, or consumers from harmful practices. Whistleblowers are often in unique positions to observe misconduct, making them vital to uncovering fraud and abuse that otherwise might remain hidden.

What Laws Protect Whistleblowers?

Several federal and state laws exist to protect whistleblowers and encourage them to come forward. The most prominent of these include:

The False Claims Act (FCA): This law primarily exposes fraud involving federal funds, such as healthcare fraud within Medicare or Medicaid. Under the FCA, whistleblowers, or “relators,” can file lawsuits on behalf of the government to recover funds lost to fraud.
The Dodd-Frank Act: This law established the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) whistleblower programs, encouraging individuals to report securities and commodities fraud. Under Dodd-Frank, whistleblowers are eligible for financial rewards and are protected against retaliation.
The IRS Whistleblower Program: This program rewards individuals who report significant tax fraud, enabling the IRS to recover unpaid taxes.

In many cases, whistleblowers are also protected by law from retaliation by their employer. The Whistleblower Protection Act (WPA) prohibits employers from taking adverse actions against employees who report illegal or unethical activities. Each of these laws offers protections to whistleblowers, including potential financial rewards and safeguards against retaliation by employers.

What Types of Fraud Can Be Reported?

Whistleblowers can report various types of fraud, depending on the laws under which they make their claims. Common types of fraud include the following:

Healthcare fraud: This includes billing for services not rendered, billing for more expensive procedures than were performed, and receiving referral kickbacks.
Government contract fraud: Contractors may inflate costs, deliver substandard goods, or falsify records to cheat the government.
Tax evasion: Individuals or businesses may engage in underreporting income, inflating deductions, or hiding assets to avoid taxes.
Securities fraud: This includes insider trading, misleading investors, falsifying financial records, or manipulating the market.
Environmental violations: Whistleblowers can report violations of environmental laws, such as illegal dumping of hazardous waste.

Can I File a Whistleblower Claim Anonymously?

In some cases, yes. For example, whistleblowers filing under the SEC and IRS whistleblower programs can often remain anonymous. However, anonymity is not guaranteed under every whistleblower law. Claims filed under the False Claims Act are initially kept under seal, meaning the details of the case, including your identity, remain confidential during the government’s investigation.

Once the case moves forward, your identity may be revealed, particularly if the case goes to trial. It is essential to consult with our team of qualified attorneys to understand how your identity might be protected based on the specific whistleblower program. If discretion is paramount, you may contact Alex Ricke directly at 816.714.7141.

What if I Make a Mistake in My Report?

Mistakes can be corrected, and the government will still investigate your claim. It is essential to be as accurate as possible in your report, but minor errors will not necessarily invalidate your claim.

What Are the Rewards for Whistleblowers?

Whistleblowers are incentivized to come forward through financial rewards, known as relator’s shares. The reward amount depends on the specific law and the outcome of the case.

False Claims Act: Under the FCA, whistleblowers can receive 15 to 30 percent of the government’s total recovery. This can amount to millions of dollars in large healthcare or government contract fraud cases.
SEC Whistleblower Program: The SEC awards whistleblowers 10 to 30 percent of the fines collected in cases where the penalties exceed $1 million.
IRS Whistleblower Program: Whistleblowers are entitled to 15 to 30 percent of the taxes recovered by the IRS if the amount exceeds $2 million.

The exact percentage awarded depends on your contribution to the case, the significance of the fraud exposed, and the success of the government’s investigation. At Stueve Siegel Hanson, we will work diligently to help you recover the maximum amount possible for your bravery in reporting fraud.

How Long Does a Whistleblower Case Take?

Whistleblower cases can take several months to years to resolve. The timeline largely depends on the case’s complexity, nature of the investigation, and cooperation level of involved parties. For instance, cases filed under the FCA can take several years because they require a thorough government investigation before the case proceeds.

It is crucial to understand that patience is often necessary for whistleblower claims, as the process is detailed and may involve numerous legal and procedural steps.

What Protections Do Whistleblowers Have?

Whistleblowers are legally protected from retaliation under federal and state laws. Common forms of retaliation include termination, demotion, harassment, and discrimination. If you experience retaliation after reporting fraud, you have the right to file a lawsuit seeking compensation.

Under the FCA, you can file a retaliation claim if you are fired, demoted, harassed, or otherwise punished for your actions. You may be entitled to:

Reinstatement to your job
Twice the amount of back pay
Compensation for legal fees

Other laws also include anti-retaliation provisions that protect you from adverse actions by your employer.

What Steps Should I Take if I Want to File a Whistleblower Claim?

If you are considering filing a whistleblower claim, here are the general steps you can take:

Gather evidence: Collect relevant documents, emails, or other evidence supporting your claim. The more evidence you have, the stronger your case will be.
Consult with a whistleblower attorney: Our attorneys can guide you through the legal process, protect your rights, and help you assess the potential risks and rewards of filing a claim.
Determine the appropriate agency: Identify the government agency responsible for investigating the type of wrongdoing you report. This could be the Department of Justice (DOJ), Department of Health and Human Services (DHHS), Securities and Exchange Commission (SEC), or another relevant agency.
File the claim: Submit a formal complaint to the appropriate agency. We will help you file under the appropriate law, such as the False Claims Act, the SEC Whistleblower Program, or the IRS Whistleblower Program. Be prepared to provide detailed information about the alleged wrongdoing.
Cooperate with investigators: The government agency will likely investigate to determine your claim’s validity. Be prepared to provide additional information or testimony as needed.
Monitor the case: Once you file your complaint, it may take time for the government to investigate and decide whether to intervene. We will help you stay updated on the progress of your case.

What Should I Look for in a Whistleblower Attorney?

It is essential to work with an experienced and successful law firm when filing a whistleblower claim. With a proven track record of securing significant recoveries in complex cases, Stueve Siegel Hanson is uniquely positioned to guide whistleblowers through every step of the process. Our firm has been nationally recognized for its ability to handle high-stakes cases, particularly in the healthcare sector, where False Claims Act lawsuits are common.

The firm offers a client-focused approach, ensuring that whistleblowers are supported and protected throughout their cases. We have a history of taking on powerful defendants and achieving multimillion-dollar settlements and verdicts. If you are considering a whistleblower claim, having an aggressive and knowledgeable legal team like ours can make a crucial difference in the outcome.

Contact Stueve Siegel Hanson Today

If you are ready to take the next step in your whistleblower journey or have questions about the process, we invite you to reach out to our experienced team. Contact us today to schedule a confidential consultation and explore how we can help you navigate your whistleblower claim.

For additional privacy, you may contact Alex Ricke directly at 816.714.7141.