How to Report Financial Fraud as a Whistleblower
Learn What You Need to Know About Filing a Financial Fraud Whistleblower Claim with the Federal Government
Financial fraud can expose banks, corporations, and other entities to substantial monetary sanctions. However, the government can only investigate potential wrongdoing when it is aware that an investigation is warranted. This makes it critical for financial fraud whistleblowers to come forward when they have original information about possible violations of the law.
We help prospective whistleblowers who have credible information take appropriate action based on the specific information they have in their possession. There are various ways to report sanctions violations, money laundering, and other forms of financial fraud, and it is critical that eligible individuals come forward through the appropriate channels. If you are eligible to serve as a financial fraud whistleblower, our attorneys can help you make an informed decision about how to come forward, and we can help secure your monetary award if your whistleblower report leads to a successful enforcement action.
Several Federal Agencies Accept Whistleblower Complaints Involving Financial Fraud
Multiple federal agencies are involved in enforcing the laws intended to prevent financial fraud impacting U.S. markets, consumers, and taxpayers. All of these agencies pay awards in appropriate cases, with whistleblower awards generally calculated as a percentage of the proceeds collected. Our attorneys are available to assist prospective whistleblowers with reporting financial fraud to federal agencies including:
Financial Crimes Enforcement Network (FinCEN)
The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) accepts whistleblower complaints involving violations of the Bank Secrecy Act (BSA) and various other federal laws. It also accepts whistleblower complaints involving violations of federal financial sanctions. Like the other federal agencies on this list, FinCEN provides monetary incentives for coming forward, and employees who report violations to FinCEN are entitled to protection against retaliation by their employer.
Internal Revenue Service (IRS)
The Internal Revenue Service (IRS) accepts whistleblower complaints involving violations of the nation’s internal revenue laws (including, but not limited to, the Internal Revenue Code). The IRS and its Criminal Investigation division (IRS CI) are committed to recovering taxpayer dollars in cases of financial fraud, and the IRS has the authority to impose fines and civil forfeitures through administrative proceedings. When the IRS successfully pursues legal action based on a whistleblower’s information, the whistleblower is generally entitled to an award calculated as a percentage of the government’s recovery.
U.S. Commodity Futures Trading Commission (CFTC)
The U.S. Commodity Futures Trading Commission (CFTC) accepts whistleblower complaints involving financial fraud impacting the U.S. commodity and derivatives markets. This includes financial fraud that violates the Commodity Exchange Act, Dodd-Frank Act, and the CFTC’s regulations enacted under these federal laws. The CFTC has established specific procedures for whistleblowers to come forward; and, if you determine that contacting the CFTC is the best approach, you will need to ensure that you carefully comply with the Commission’s authorized whistleblower procedures.
U.S. Department of Justice (DOJ)
The U.S. Department of Justice (DOJ) accepts whistleblower complaints involving illegal activity impacting all segments of the U.S. financial system. In addition to administering two separate whistleblower programs, the DOJ also handles whistleblower complaints filed under the False Claims Act in federal court. The DOJ’s whistleblower programs and the False Claims Act also incentivize whistleblowers to come forward with stringent protections and monetary rewards.
U.S. Securities and Exchange Commission (SEC)
The U.S. Security and Exchange Commission (SEC) accepts whistleblower complaints involving financial fraud perpetrated by public corporations, private corporations, financial firms, and other entities and individuals. Whistleblowers who report suspected violations to the SEC’s whistleblower office in good faith are entitled to confidentiality and anti-retaliation protections, and those who help the SEC pursue successful enforcement actions are entitled to a percentage of the monetary sanctions collected. The SEC’s whistleblower office pays monetary awards regularly, and it is responsible for issuing several of the largest whistleblower awards in U.S. history.
How to Submit Information About Financial Fraud to the Federal Government
If you are prepared to serve as a financial fraud whistleblower, how do you come forward? Broadly, prospective whistleblowers in the private sector have two options for reporting all forms of fraud, waste, and abuse (FWA):
1. File a Qui TamComplaint Under the False Claims Act
As noted above, the DOJ handles financial fraud whistleblower cases filed under the False Claims Act. There are certain circumstances in which financial fraud whistleblowers will need to come forward under the False Claims Act instead of filing a whistleblower complaint with the DOJ directly. We have extensive experience providing assistance to False Claims Act whistleblowers; and, after filing your complaint in federal court, we can work with the DOJ on your behalf as it investigates the allegations you have put forward.
If a False Claims Act lawsuit leads to a successful enforcement action, the whistleblower is generally entitled to between 15% and 30% of the funds recovered. Our attorneys can advise you regarding the steps you need to take to maximize your award eligibility; and, if you become entitled to an award, we can work to secure a maximum award on your behalf.
2. Come Forward Under a Federal Whistleblower Program
In most cases, coming forward as a financial fraud whistleblower will involve reporting the fraud in question to one of the federal agencies listed above. After confirming your eligibility to come forward, our attorneys can file a report with the appropriate agency on your behalf, and then we can work alongside the agency as it pursues administrative, civil, or criminal penalties.
The agency you contact may need to get in touch with you at various stages of the process; and, when the agency contacts you, a prompt and appropriate response is critical. Here too, our attorneys can provide direct representation, and we can provide the advice you need to make informed decisions every step of the way.
FAQs: Holding Financial Institutions and Corporate Entities Accountable for Fraud
How do I report fraud committed by a financial institution, investment firm, or corporation to the federal government?
The steps you need to take to report fraud committed by a financial institution, investment firm, or corporation to the federal government depend on the specific information you have in your possession. The CFTC, DOJ, FinCEN, IRS, and SEC all accept whistleblower complaints involving financial fraud allegations; and, in some cases, coming forward under the False Claims Act may be an option as well. If you are interested in coming forward, our attorneys can help you determine how best to proceed.
What qualifies as a “covered action” for purposes of securing federal whistleblower protections?
To qualify as a financial fraud whistleblower, you must report specific information that the federal government can use to pursue administrative, civil, or criminal penalties. You must also provide “original” information—meaning that the information you are prepared to disclose must not already be known to the federal government. Importantly, if you provide original information through the appropriate means, you will be entitled to whistleblower protections regardless of whether the government’s enforcement efforts are successful.
How does the Taxpayer First Act protect financial fraud whistleblowers?
The Taxpayer First Act enhances the whistleblower protections that are available to individuals who report financial fraud to the IRS. It expressly prohibits retaliation against whistleblowers—similar to the Dodd-Frank Act, False Claims Act, and other federal whistleblower statutes.
How is the award amount calculated in a financial fraud whistleblower case?
In financial fraud whistleblower cases, award amounts are calculated based on the amount of the government’s recovery. In most cases, whistleblowers can receive between 10% and 30% of the amount recovered if they contact the CFTC, DOJ, FinCEN, IRS, or SEC directly, or between 15% and 30% of the amount recovered if they file a False Claims Act case in federal court. Specific award percentages are determined based on the volume and value of the information provided, among other factors.
What is my first step if I am prepared to report financial fraud as a whistleblower?
If you are prepared to report financial fraud as a whistleblower, your first step is to speak with an experienced federal whistleblower attorney who can confirm your eligibility and help you determine how to come forward. Working closely with you, your attorney will be able to prepare your whistleblower complaint before filing it through the appropriate means. After filing your whistleblower complaint on your behalf, your attorney will work with the relevant federal authority (or authorities) while remaining in close contact with you and helping to ensure that your identity remains confidential.
Contact Us for a Free and Confidential Initial Consultation Today
If you need to know more about reporting financial fraud to the federal government, we encourage you to contact us promptly for a free and confidential consultation. Our attorneys represent financial fraud whistleblowers nationwide, and we do not charge any out-of-pocket costs or fees for our legal representation. To speak with one of our senior financial fraud whistleblower attorneys in strict confidence as soon as possible, call 866-320-3959 or tell us how we can reach you online now.