If you know of wrongdoing or fraud by your employer or other entity, you can take steps to stop it. Learn what you can do with that information and decide if becoming a whistleblower is right for you.
Being a whistleblower is one way to make authorities aware of practices that violate the law, steal taxpayer funds, endanger patients, or cheat investors.
Table of Contents
- What is a whistleblower?
- Who can be a whistleblower?
- Can a whistleblower be anonymous?
- Do I need a lawyer to file a whistleblower lawsuit or a whistleblower claim?
- How Do You Become a Whistleblower?
- Tips on Being a Successful Whistleblower
- How much do whistleblowers get paid?
What is a whistleblower?
A whistleblower is an employee, former employee, or other insider who reports information about illegal, unethical, or unsafe conduct within an organization. This may include fraud, corruption, or violations of law, and is typically reported to government agencies, law enforcement, or internal officials with authority to address the issue. Whistleblowers are often legally protected from retaliation when they come forward. While reporting wrongdoing can involve personal or professional risk, many whistleblowers act to stop misconduct, protect the public, and promote accountability within an organization or industry.
Who can be a whistleblower?
A whistleblower can be any individual, insider or outsider, who has specific, credible information about wrongdoing and reports it through appropriate channels. This commonly includes current or former employees, contractors, subcontractors, corporate officers, or others with direct knowledge of fraud against the government, securities or commodities violations, or tax misconduct. In some cases, individuals outside the organization, such as competitors or industry observers, may also qualify if they possess reliable evidence of illegal activity. Whistleblowers may be eligible for legal protections against retaliation and, under certain programs, financial rewards. Multiple individuals can also come forward together as co-whistleblowers, often strengthening a case by combining information and documentation.
Whistleblower Protection Laws
Two major laws that offer whistleblowers in the private sector job protection and rewards in certain types of cases are:
- The False Claims Act is a federal law that allows individuals with nonpublic information about fraud against the government to report misconduct and, in many cases, file a whistleblower claim. The law applies to fraud that causes the government to lose money or pay funds based on false claims, including Medicare and Medicaid fraud and defense contractor fraud. Many states have similar false claims laws that apply when state or local government entities are defrauded.
- The Dodd-Frank Act, enacted in 2010, established the Securities and Exchange Commission and Commodity Futures Trading Commission whistleblower programs. These programs allow individuals with non-public information about securities or commodities law violations to report misconduct through formal channels. The law is designed to encourage people to come forward by providing confidentiality protections and, in some cases, financial rewards for eligible whistleblowers.
Read advice and tips from a whistleblower who helped stop a significant fraud and received a reward.
Can a whistleblower be anonymous?
Whether a whistleblower can be anonymous depends on the applicable whistleblower law.
Qui tam cases filed under the False Claims Act are filed under seal, which means only the government knows about the whistleblower case and the whistleblower’s identity while the government investigates the allegations. Once the court lifts the seal, usually after the government decides whether to intervene, the lawsuit becomes public.
SEC whistleblower claims and CFTC whistleblower claims are treated confidentially by both agencies. The whistleblower’s identity is protected to the fullest extent possible under the law. However, in certain circumstances, such as a court or administrative hearing, the SEC or CFTC may be required to produce certain documents or information that might reveal a whistleblower’s identity.
Whistleblowers may submit their information anonymously to the SEC and CFTC if they do so through an attorney. In those instances, the attorney is required to certify that the whistleblower’s identity has been verified.
Do I need a lawyer to file a whistleblower lawsuit or a whistleblower claim?
The False Claims Act requires that attorneys file whistleblowers’ qui tam cases. Under the Dodd-Frank Act, an attorney must file a whistleblower’s claim with the SEC or the CFTC if that whistleblower wants to be anonymous.
If you are considering being a whistleblower, it is generally a good idea to contact an attorney who has extensive experience handling successful whistleblower cases before taking any action. Top whistleblower attorneys would be able to assess your situation and advise you on the best and safest course for you to take given your individual circumstances.
Most whistleblower attorneys work on a contingency basis, meaning their whistleblower clients only pay them if a case is successful and they receive a reward. Initial consultations to discuss the possibility of becoming a whistleblower should be free, and any lawyer who’s considering taking your case should offer to pay your travel costs to meet with him or her.
The lawyer also can suggest how to proceed at your workplace, whether or not you have reported your concerns to your supervisors or through an internal compliance program at work.
How to become a Whistleblower
Step 1: Document your concerns
- Begin gathering evidence and keeping detailed notes.
- Prepare a summary that describes who is involved, what the facts are, when did the wrongdoing occur, where did it happen, etc.
Step 2: Consult with an Experienced Whistleblower Attorney
- Find a whistleblower attorney experienced in cases involving your type of fraud.
- Decide whether you plan to keep your identity confidential.
Step 3: Understand your rights and protections
- Familiarize yourself with whistleblower protections and anti-retaliation laws.
Step 4: File a complaint with your attorney
- Depending on the wrongdoing, file with the appropriate agency (SEC, IRS, DOJ).
- After submission, the agency typically acknowledges receipt, but investigations are confidential, and status updates may be limited.
Step 5: Avoid public discussions
- Don’t discuss facts of the case with friends, colleagues, or on social media to preserve your confidentiality and safety.
Step 6: Prepare for outcomes
- Understand that legal proceedings can take time and prepare for potential backlash or protections.
- Agencies may request additional information during the investigation, and whistleblowers often work with counsel to supplement their submission if needed.
Learning how to become a whistleblower may not be easy but going through the correct process will make it the easiest. To become a whistleblower, you will need to file a claim with the program that protects against the specific type of fraud you’re reporting. Whistleblowers file most commonly with the False Claims Act (FCA), the SEC Whistleblower Program, or the IRS Whistleblower Program. There are some instances where a claim can be filed under multiple laws. The statute of limitations, procedure, attorney requirements, and whistleblower protections of your claim will vary depending on the program you’re planning to file under. Regardless of which program that is, we highly recommend consulting with an experienced whistleblower attorney before filing to assess your individual situation and advise you on the safest course of action.
Crucial Timelines When Becoming a Whistleblower
Timing plays an important role in how to move forward as a whistleblower. Most whistleblower laws include statutes of limitations that affect when an individual can file a claim or submit information to the government. These deadlines vary depending on the program involved, such as the False Claims Act, which generally allows up to six years to file, or the IRS and SEC whistleblower programs, which have different and sometimes shorter time requirements. Because missing a deadline can limit eligibility, individuals considering whether to come forward should consult an experienced whistleblower attorney early to understand applicable timelines and protect their rights.
Tips to Become a Successful Whistleblower
Here are excellent whistleblower tips from a former Phillips & Cohen client based on his experience as a whistleblower.
Dear Fellow Whistleblower:
If you are reading this, I assume you are trying to decide whether to blow the whistle or you are looking for an attorney to represent you or both.
I, too, was a whistleblower. I am writing to share my experience with you about my early endeavors, searching for the most suitable law firm for representation for blowing the whistle.
I remember looking for that type of information to help me at the beginning of my journey as a whistleblower, but unfortunately without success. Consequently, I have asked Phillips and Cohen to publish this. I truly hope that some of these details may assist and inspire you as you move forward.
Tip 1: Deciding to blow the whistle
Firstly, deciding on being a whistleblower can be a daunting task. It takes a lot of courage to take such an action and to question whether what the firm was doing was wrong – especially when it involves senior management or executive management.
At first, there will be days you wish to proceed and other days where fear takes hold and you question your actions and are concerned about the unknown events that are about to occur. However, I can say it is the best decision I have made in my life. It ultimately stopped the wrongdoing and changed for the better the way things were done.
As you know, if people can get away with doing things the wrong way, some people will do it. Once it becomes routine or starts making money, those people will justify their actions to continue the wrongdoing.
The ultimate excuse is “Everyone else does it,” but we know that this reasoning is deplorable. Unfortunately this rationale is found in many reputable companies because of the staggering amount of money that is generated by fraud and abuse schemes. This could be in the medical field, financial markets, government contracting or any other industry.
So if you are in a position to blow the whistle and contribute to the benefit of mankind, I admire you. If the fraud or corporate wrongdoing involves management at the top, then the company will most likely have mechanisms in place to avoid detection. Don’t let this deter you – it should make you more determined to come forward. Chances are you have a strong whistleblower case.
Tip 2: A whistleblower’s most important decision: Your lawyer
This is where the law firm you choose comes into play. It is one of the most important decisions you will make. It is so important that no matter what field your fraud is associated with, the law firm that represents you must have experience and expertise in whistleblower cases. Also remember that you will be dealing with this person for years to follow, so your selection process is critical.
I know it will be difficult at the start to find the right attorney because most whistleblowers have never had any experience looking for a lawyer. You most likely will use the internet to research possible law firms for whistleblower cases, especially if you wish to remain anonymous.
I looked at a number of law firms online, spending weeks reading about them and investigating their experience and success with whistleblower cases even before making my first phone call. When I did start making phone calls, I always called the attorney directly but anonymously.
Initially, I contacted two law firms, but I did not feel 100 percent satisfied after each call. Hence, I did not proceed any further with these firms. It was more about having a connection with the attorney. As a result, I contacted another law firm, Phillips & Cohen LLP. I closely examined the attorneys’ expertise, then decided to talk to Erika Kelton at the firm. After two anonymous and lengthy calls with her, she became my attorney from start to finish. I think it’s normal to assess your compatibility with the law firm and attorney that will represent you, so be confident to decide that on your own.
I must say that Erika and her firm were absolutely astounding. Erika was not only my attorney, but she was a great mentor on every aspect of life during this period. Erika and her team at Phillips & Cohen were extremely professional and friendly and guided me through the entire process.
Their advice and experience is commendable, and their honest opinion in forecasting the various scenarios in my case was extremely valuable. Their extent of knowledge from a legal perspective is overwhelming. The firm has a great team of brilliant minds that work together. I applaud them on all their effort and hard work.
Tip 3: What to expect as a whistleblower
After you file a whistleblower case or claim, you will be surprised that the government really appreciates what you do. There are well-established mechanisms in place to assist whistleblowers to clean up these companies. The False Claims Act that allows for “qui tam” whistleblower lawsuits and the Dodd-Frank Act that created the SEC whistleblower program are proof of this. I was really impressed with the way all the various government bodies interacted and worked together to solve the case. It was indeed impressive.
The best advice I can give on what to do as your case proceeds is make the best effort you can to provide honest and complete information about the fraud scheme or wrongdoing. Provide every detail that you are asked to assist in making the investigation process easier for all parties.
You have got to be available at all times to answer questions and provide information. I am not suggesting that you will be called every day, but when questions need to be answered, it’s important to respond swiftly – no matter how busy you are.
Additionally, when you know information is a fact, then state it. When you are unsure, be clear about that, too – for example, if it’s only an opinion and not a fact.
Basically whatever effort you put into the case will be one of the key factors that eventually determines the outcome and level of success – not just in terms of financial rewards but also in terms of success and timing.
Please bear in mind that to resolve the case, it’s not just a matter of knowing who committed the fraud or wrongdoing and stating the obvious. It takes a lot of work and planning to map out the entire scheme and hierarchy. It is crucial to provide solid evidence of the entire scheme rather than just make accusations without facts.
Tip 4: The biggest mistakes you can make when deciding to become a whistleblower
You may have the option of going directly to a governing or regulating body to make the complaint. This is one of the avenues suggested by some online when you research whistleblower cases. But my advice to you is this: Hire a whistleblower attorney first.
Reputable whistleblower attorneys will take your case on a contingency basis, so you don’t pay anything to them until you receive a reward, and you will owe them nothing if you don’t get one.
Speak to your attorney about your case, and they will advise you on your best options. There could be multiple directions your case could advance. If this is the situation, then an attorney from a whistleblower firm is your best option to manage this entire process for you. Their number one priority will be to win your case no matter which avenue they choose. Consequently, you need to have trust in your attorney, so that you work closely with them at all times.
On another issue, be careful if you decide to look at law firms that do more than represent whistleblowers. If they also practice in other areas of law, there could be a conflict of interest at stake, whether a legal one or an ethical one. Consider whether you want to hire a law firm that also represents companies in the same field and defends them in court, as there are a number of law firms that do that. Similar concerns about conflicts of interest also could arise when seeking independent counsel for reviewing agreements on the case.
Tip 5: Stay quiet about your whistleblower case
Another important piece of advice: Don’t tell anyone about your whistleblower case. I’ll repeat that in another way: Don’t tell anyone that you have come forward to be a whistleblower.
The only person you should talk to and trust about your whistleblower case is your attorney. There will be a temptation at times to share this experience with an important friend or colleague. Take my advice: Don’t do it. There is much at risk. If you have a good attorney you can get advice on this. I am certain your attorney can share many experiences from their previous whistleblower clients on this matter.
One last point: It’s important to act swiftly, both from the point of view of stopping the fraud or wrongdoing from continuing as well as making it more likely you will get a reward from the government for blowing the whistle. Quick action is paramount.
Good luck and stay determined.
Your Fellow Whistleblower
(Although my case was a successful whistleblower case, I have chosen to remain anonymous. I’m sure you understand.)
For additional tips to become a whistleblower, see:
- Pitfalls to avoid when filing a qui tam case
- Tips for choosing a whistleblower lawyer
- Whistleblower FAQs
How much do whistleblowers get paid?
Whistleblower rewards vary depending on the specific whistleblower program and the circumstances of the case. For instance, in the United States, the False Claims Act (FCA) permits whistleblowers to receive a portion of the funds recovered by the government as a result of their tip, up to 30%. The Dodd-Frank Wall Street Reform and Consumer Protection Act also allows for monetary rewards ranging from 10% to 30% of the monetary sanctions collected in cases involving securities law violations. The amount of the reward is influenced by various factors, such as the importance of the information provided by the whistleblower and the amount of funds recovered due to their disclosure. Whistleblowers can be compensated anywhere from thousands to millions of dollars, which makes it a desirable option for individuals who possess inside knowledge of unlawful corporate activities.
Contact an attorney at Phillips & Cohen about how to become a whistleblower
If you are considering becoming a whistleblower, speaking confidentially with a whistleblower attorney can help you understand the reporting process and your legal options. Phillips & Cohen LLP offers free and confidential reviews for individuals evaluating whether they may qualify as a whistleblower and how to proceed. For over 30 years, Phillips & Cohen LLP has represented only whistleblowers. Our firm has helped clients recover more than $13 billion through whistleblower cases, making it one of the most experienced and successful law firms focused exclusively on whistleblower representation.