What Happens if a Whistleblower is Wrong?
Federal Whistleblowers Are Entitled to Protection As Long as They Come Forward in Good Faith and in Compliance with the Law
Federal whistleblower laws are designed to protect those who are willing to come forward. As long as you have a reasonable belief that the information you are disclosing is accurate (and you comply with the applicable filing requirements), you are entitled to protection even if you ultimately turn out to be wrong.
Federal law affords strong legal protections to whistleblowers. Whistleblowers play an important role in exposing all forms of fraud, waste, and abuse, as well as numerous other forms of wrongdoing. To encourage individuals to come forward, federal whistleblower statutes entitle whistleblowers to strict confidentiality and protection against retaliation, and monetary rewards are also available in some cases.
But, what happens if a whistleblower is wrong?
The short answer is, “Nothing.” Being right is not a legal requirement for qualifying as a federal whistleblower. Determining if legal action is warranted requires a comprehensive investigation conducted using the resources and authority of a federal law enforcement agency. As a result, whistleblowers are not expected to be right 100% of the time, and the federal government protects all individuals who are willing to put in the time and effort to come forward through the appropriate means.
Qualifying for Protected Whistleblower Status Does Not Require Conclusive Proof of Wrongdoing
Under all federal whistleblower protection laws, securing protected whistleblower status does not require conclusive proof of wrongdoing. The federal government accepts whistleblower claims from all individuals who reasonably believe that they have information about a violation of federal law. This includes, but is not limited to, potential violations such as:
- Fraud and abuse under federal contracts, grants, and programs
- Securities fraud and commodities fraud (including market manipulation)
- Tax evasion and tax fraud
- Gross waste and gross mismanagement of federal funds (including bribery and corruption)
- Substantial and specific dangers to public health or safety
- Threats to national security
- Unlawful retaliation (including wrongful termination)
Whistleblowers can report potential violations by federal contractors, healthcare providers, and other businesses, as well as violations by federal government personnel. If you have questions about coming forward, an experienced whistleblower attorney at our firm can evaluate the information you have in your possession and determine whether you have a potential claim.
Options for Coming Forward as a Federal Whistleblower
If you are eligible to serve as a federal whistleblower, a whistleblower lawyer at our firm can also assess your options for coming forward. The options you have available will depend on the specific information you have in your possession and whether you work in the private sector or for the federal government. With this in mind, potential options include:
Qui Tam Complaints Under the False Claims Act
The False Claims Act applies in cases involving the submission of false information or fraudulent billings under federal contracts, grants, and programs. Whistleblowing under the False Claims Act involves filing a qui tam complaint in federal district court. The False Claims Act provides protections to whistleblowers who meet the statutory filing requirements; and, in successful cases, False Claims Act whistleblowers are entitled to a percentage of the monetary sanctions recovered.
Federal Whistleblower Reward Programs
A handful of federal government agencies have established whistleblower reward programs. Under these whistleblower programs, individuals who meet the relevant filing requirements are entitled to protection against disciplinary action and other forms of retaliation regardless of the outcome, and they may be entitled to monetary rewards if their information leads to a successful enforcement action.
The federal agencies that have whistleblower reward programs include:
Financial Crimes Enforcement Network (FinCEN)
Financial Crimes Enforcement Network (FinCEN)
Internal Revenue Service (IRS)
The Internal Revenue Service (IRS) accepts whistleblower complaints involving allegations of tax evasion, tax fraud, and other tax law violations, as well as related financial crimes.
U.S. Commodity Futures Trading Commission (CFTC)
The U.S. Commodity Futures Trading Commission (CFTC) accepts whistleblower complaints involving alleged violations of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and other federal commodities laws.
U.S. Department of Justice (DOJ)
The U.S. Department of Justice’s Antitrust and Criminal Divisions accept whistleblower complaints involving alleged antitrust violations and other corporate civil and criminal offenses.
U.S. Securities and Exchange Commission (SEC)
The U.S. Securities and Exchange Commission (SEC) accepts whistleblower complaints involving alleged violations of the Securities Exchange Act, the Sarbanes-Oxley Act (SOX), and other federal securities laws.
Other Federal Agencies that Accept Whistleblower Complaints
Other federal agencies accept whistleblower complaints as well, though these agencies do not have whistleblower reward programs. If you have emails, internal documents, or other evidence related to your employer (or another company) that you believe may reflect a violation of federal law, you may be able to come forward as a protected whistleblower. Here are just two examples of other agencies that accept whistleblower complaints under relevant law:
U.S. Environmental Protection Agency (EPA)
The EPA accepts whistleblower complaints involving alleged violations of the Endangered Species Act (ESA); Clean Air Act (CAA); Clean Water Act (CWA); Comprehensive Environmental Response, Compensation, and Liability Act (CERLA), and other federal environmental statutes.
U.S. Occupational Safety and Health Administration (OSHA)
OSHA accepts whistleblower complaints involving alleged violations of the Occupational Safety and Health Act (OSH Act), as well as alleged violations of other federal laws and regulations that protect workers’ safety and impose penalties for noncompliance.
Whistleblower Protection Act (WPA) Claims (for Federal Employees)
For federal employees, reporting suspected wrongdoing typically involves coming forward under the Whistleblower Protection Act (WPA). The WPA prohibits retaliation against federal personnel who come forward through the appropriate channels.
Depending on the circumstances, this may involve coming forward to the DOJ, the Federal Bureau of Investigation (FBI), an Office of Inspector General, a grand jury, or another “authorized recipient.” The WPA’s anti-retaliation provisions prohibit federal agencies from taking adverse action against federal workers who engage in protected activity by reporting concerns about possible statutory or regulatory violations.
FAQs: Coming Forward as a Federal Whistleblower
How do I report fraud under a federal contract?
Reporting fraud under a federal contract typically involves filing a qui tam complaint under the False Claims Act. If you believe that your employer, or another federal contractor or subcontractor, has improperly billed the government, our lawyers can explain everything you need to know about the False Claims Act’s qui tam provisions and file a complaint on your behalf if warranted.
How do I seek a financial reward under the Dodd-Frank Act?
Seeking a financial reward under the False Claims Act typically involves filing a whistleblower complaint with either the U.S. Commodity Futures Trading Commission (CFTC) or the U.S. Securities and Exchange Commission (SEC). Both of these agencies have whistleblower reward programs, and they are both responsible for paying some of the largest whistleblower rewards in U.S. history.
Is it possible for whistleblowers to face criminal charges if they are wrong?
Technically yes, but only in extremely limited circumstances. To be at risk of facing criminal charges, a whistleblower must intentionally attempt to mislead the federal government. If you disclose information to the federal government in good faith, you are entitled to the whistleblower protections that are available under federal law even if you ultimately turn out to be wrong.
Should I talk to an attorney before filing a whistleblower complaint with the federal government?
Yes, we strongly recommend talking to an attorney before you file a whistleblower complaint with the federal government. There are several reasons why. Among them, an experienced whistleblower attorney will be able to confirm whether you are eligible to serve as a federal whistleblower; and, if you are, your attorney will be able to help you decide how to come forward based on the specific information you have in your possession.
Hiring an attorney in this scenario costs nothing out-of-pocket. Your legal fees (if any) will be deducted from your whistleblower reward if you receive one. In some cases, we are able to seek to recover our fees directly from the federal government or another party as well.
Is a whistleblower attorney required to keep my information confidential?
Yes, if you hire a whistleblower attorney to represent you, your attorney will be required to keep your information strictly confidential. Your attorney should not disclose any information you provide (including your identity) unless you provide express authorization to do so.
Schedule a Free and Confidential Consultation with a Senior Whistleblower Lawyer at Oberheiden P.C.
Do you have more questions about serving as a federal whistleblower? If so, we strongly encourage you to get in touch. We have extensive experience representing federal whistleblowers, and our experienced federal whistleblower lawyers can explain everything you need to know to feel confident in your next steps. To schedule a free and confidential consultation as soon as possible, call us at 866-320-3959 or tell us how we can reach you online today.