Erika A. Kelton has substantial experience representing both US and international whistleblowers in cases involving fraud against the U.S. government and those involving claims brought under whistleblower reward programs with the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission and the Internal Revenue Service, including Foreign Corrupt Practices Act violations.
Ms. Kelton has won three SEC whistleblower awards for clients, including the largest SEC whistleblower award — more than $32 million awarded to an international whistleblower in a case involving massive securities fraud. She also secured for a separate client an award of more than $3 million. The SEC whistleblower awards to her clients total more than one-third of the whistleblower reward amounts the SEC has made.
Ms. Kelton also has set records in her work on “qui tam” (False Claims Act) whistleblower cases. Ms. Kelton represented whistleblowers in the two biggest healthcare fraud settlements ever:
- A record-setting settlement by GlaxoSmithKline for $3 billion in 2012. Phillips & Cohen’s qui tam lawsuit against Glaxo filed on behalf of two whistleblower clients and a separate whistleblower lawsuit settled for a combined $1.017 billion plus a related criminal fine of $554 million for a criminal charge based on Phillips & Cohen’s case.
- A whistleblower case against Pfizer Inc. for illegally marketing the painkiller, Bextra. Pfizer paid $1.8 billion in 2009 to settle that case and a related criminal fine. The settlement was the biggest piece of a global settlement of several whistleblower cases by Pfizer for $2.3 billion – which was at the time the largest healthcare fraud settlement ever in the U.S. and now is second largest after the Glaxo settlement.
...as impressive as the corporate scalps on her wall is Kelton's mastery of the art of relating to, protecting and guiding the whistleblower.
But as Lawdragon noted in an article about Phillips & Cohen, “as impressive as the corporate scalps on her wall is Kelton’s mastery of the art of relating to, protecting and guiding the whistleblower.”
Ms. Kelton has been recognized for her work with whistleblowers many times. She was named as one of the “Attorneys Who Matter” for 2015 and 2016 by Ethisphere Institute. Lawdragon selected her for its “500 Leading Lawyers in America” list for 2013 and 2014-2015. And she was named “Whistleblower Lawyer of the Year” by Taxpayers Against Fraud, a nonprofit organization that advocates on behalf of whistleblowers, in 2012.
Her other successful whistleblower cases include:
- The IRS whistleblower claim of a confidential tax informant, known as “Mr. ABC,” who provided the Internal Revenue Service with important information about fraudulent tax shelters set up by Wall Street investment firms and who testified on the matter before the Senate Finance Committee. The complex tax schemes cost the U.S. Treasury hundreds of millions of dollars.
- A whistleblower case brought on behalf of a former investment banker against numerous Wall Street banks involving IRS prohibitions against tax-exempt municipal bond arbitrage and violations of securities laws. The case, which exposed the widespread practice of “yield-burning” on Wall Street, returned more than $200 million to the U.S. Treasury.
- A whistleblower lawsuit against Wall Street investment giant Mario Gabelli that alleged he and affiliated companies set up sham companies to qualify for certain telecom licenses. Mr. Gabelli and his associates paid a $130 million settlement.
As an expert in whistleblower enforcement approaches, Ms. Kelton has consulted with the U.S. Congress, the Securities Exchange Commission, the Commodity Futures Trading Commission and the Internal Revenue Service on the establishment and workings of the agencies’ whistleblower programs. Both the SEC and the IRS have featured her as an invited speaker at internal conferences for their attorneys and investigators to discuss more effective ways to work with whistleblowers in enforcement matters.
Ms. Kelton is active in international whistleblower matters, including matters before the UK Financial Conduct Authority. The UK Parliamentary Commission on Banking Standards requested Ms. Kelton submit testimony about whistleblowing and quoted from her testimony in its report. She also has consulted on whistleblower programs with policymakers and legislators in Europe and Asia.
Ms. Kelton is frequently interviewed by journalists for her expertise in whistleblower matters involving the False Claims Act, the IRS whistleblower program and the Dodd-Frank whistleblower reward programs at the SEC and the CFTC. She often has been quoted by U.S. media – including The New York Times and The Wall Street Journal – and by media in other countries, such as Valor Economico (Brazil), the Frankfurter Allgemeine Zeitung (Germany), the BBC, The Financial Times and Australian Public Radio.
Ms. Kelton has published several articles and op-eds about whistleblower laws and programs. She also is a regular contributor to Forbes.com, where she has a blog, “Fraud Matters.”
Ms. Kelton graduated from the University of California Berkeley School of Law (Boalt Hall), where she was articles editor of the California Law Review. From 1987 to 1994 she was associated with Paul, Weiss, Rifkind, Wharton & Garrison.
Ms. Kelton is on the Board of Directors and the President’s Council for Taxpayers Against Fraud, a nonprofit, public interest organization that supports and advocates on behalf of whistleblowers.
She teaches a course on whistleblower law at the University of California at Berkeley School of Law with fellow Phillips & Cohen partner Claire M. Sylvia. It is one of few courses on whistleblower law taught at a major law school.
Ms. Kelton is admitted to the bar in Washington, DC, and California.
- “Silicon Valley biotech exec fights to dismiss illegal marketing case” – Mercury News
- “SEC’s First Whistleblower Office Leader Announces Departure as Awards Mount” – National Law Journal
- “Prairie Meadows points finger at whistleblower” – Des Moines Register
- “Ex-Oracle employee sues company claiming she was fired after threatening to ‘blow the whistle’” – Inside Counsel
- “SEC continues to pay out sizable awards for help from whistleblowers” – Inside Counsel
- “SEC Awards Whistleblower $3.5 Million for Help in Ongoing Investigation” – National Law Journal
- “CFTC Pays Over $10M In Record Whistleblower Award” – Law360
- “U.S. Commodities Agency Rewards $10M to Whistleblower—a Record” – National Law Journal
- “SEC Responds to Whistleblower Who Challenged Agency Delay” – National Law Journal
- “My Legal Life: Erika Kelton” – Law Society Gazette (UK)
- “SEC continues to pay out millions for whistleblowing tips” – Inside Counsel
- “SEC Awards More Than $3 Million to Whistleblower” – Corporate Crime Reporter
- “SEC to Give Biggest-Ever Whistleblower Award” – Accounting Today
- “Glaxo in $3 Billion Settlement” – Wall Street Journal
- “Glaxo Agrees to Pay $3 Billion in Fraud Settlement” – The New York Times
- “Wall Street tipster gets rich off IRS whistleblower program” – CNN Money
- “U.S. tax whistleblower gets $2 million IRS award -lawyer” – Reuters
- “IRS pays Enron whistleblower $1.1 million” – The Washington Post
- “Help More Whistle-Blowers” – The New York Times
- “Wells Fargo CEO John Stumpf’s ‘Gutless Leadership’ Keeps Bank Mired In Mud” – Forbes.com
- “Look Who’s Bearing The Cost Of Pharma’s Long-Time Sales And Marketing Tactics” – Forbes.com
- “LuxLeaks highlights need for whistleblower protection and incentives” – EurActiv
- “Rewarding whistleblowers” – The Economist
- “It’s Time to Stop Thinking of Whistleblowers as ‘Nut Jobs'” – Compliance Week
- “CEOs would pay attention to bonus clawbacks” – Financial Times
- US-Italy Conference on Whistleblower Laws – US Embassy in Italy – Oct. 2016
- Speaker at an Internal SEC conference – June 2016
- Insider Trading, Whistleblowers and the Expanding Role of Big Data in Securities Enforcement – Securities Enforcement Forum West -May 2016
- Navigating the Minefield of Dodd-Frank’s Whistleblower Provisions and the FCPA – Securities Docket – Nov. 2015
- Moderator at several Taxpayer Against Fraud Conference panels, including:
- “Discussion with the Directors”: IRS, SEC, and CFTC Whistleblower ‘Boot Camp’
- Update on the IRS, SEC, CFTC, and New York Attorney General Whistleblower Programs
- Enticing the Top Echelon: How the IRS, SEC and CFTC Attract High-Level Whistleblowers – Off Shore Alert Conference – April 2012
- Overcoming Resistance When Implementing Whistleblowing Programmes in France – C5 4th Paris Edition on Anti-Corruption – Oct. 2011
- Whistleblowing – a concept for Europe? – Basel Institute (Switzerland) – July 2011
- Views from the Other Side: The Perspective of Plaintiff’s Counsel and Whistleblowers – Whistleblower Enforcement and Compliance – 2011
- Overcoming Challenges Resulting from Various Legal and Compliance Requirements to Globally Address Corruption Risk – 10th European Forum on Anti-Corruption, Frankfurt Edition – 2011