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As a Memphis, Tennessee qui tam and whistleblower attorney, I wanted to share the following three reports on new whistleblower rules.
MarketWatch (8/11, Orol) reported Securities and Exchange Commission whistleblower chief Sean McKessy refuted criticisms that the new office will render companies’ internal reporting programs useless. The US Chamber of Commerce is among the office’s chief critics noting the agency doesn’t require whistleblowers to inform companies before contacting the SEC. McKessey told reporters Thursday that the program provides incentives for employers to improve their systems. He said some cases of wrongdoing would go unreported if employees had to notify their executives first. McKessy said the office, which opens Friday, has already amassed a number of good tips, some of which have significantly slashed the amount of time it would’ve taken the agency to conduct its own investigation.
Reuters (8/11, Shalal-Esa) reported the Dodd-Frank-mandated rule allows whistleblowers to earn between ten and 30 percent of rewards over one million dollars. McKessy said whistleblowers may receive greater compensation for notifying the company before contacting the SEC. Companies including JPMorgan Chase and Google have expressed concerns the rule will weaken their own programs. Companies also expressed concern the rules would prompt compliance officials and company attorneys to air companies’ dirty laundry in efforts to recover rewards. McKessey said such individuals could only offer tip in limited cases.
Joe Palazzolo reported in the Wall Street Journal‘s (8/11, Subscription Publication) “Corruption Currents” blog that McKessey said he’s been threatened with litigation over the rule from all sides. The US Chamber of Commerce is mulling such action following a successful takedown of Dodd-Frank’s proxy shareholder rule. The business group argued the SEC underestimated the costs to companies to execute the rule. Rep. Michael Grimm has introduced legislation that would require employees to access a company’s internal channels in order to qualify for an award. The office will open with seven members include McKessey, along with a website.
As a whistleblower attorney, we are interested in speaking with persons willing to make known the truth about company practices and are willing to file a qui tam or whistleblower action. One area in particular we are interested in discussing are lawsuits involving medical device companies where the company is alleged to have overcharged, engaged in kickback programs, and the like. We will nevertheless investigate claims in a variety of areas.
Workers and persons all across the country witness actions at their work that may be unlawful or even corrupt. Unfortunately, some employees and workers feel that they will be fired, terminated, harrassed or punished if they report an unlawful or corrupt action. These reporters, however, are protected by the law as a Whistleblower and can receive compensation because of the False Claims Act or the Medicaid False Claims Act. If you have reported actions that may be fraudulent, then you should talk to a Whistleblower or qui tam lawyer about your facts.
Whistleblowers help the government to get back billions of dollars each year with the help of the False Claims Act. In fact, fraudulent Medicaid claims are also caught by whistleblowers having the Medicaid False Claims Act on their side. If you report a false claim or fraudulent action to the government, then the government will give you, the whistleblower, a part of the money that gets recovered. This is because of qui tam requirements. Qui Tam means that a person files a lawsuit for the king and also for him or herself. These requirements and lawsuits were made popular during the Civil War when many people were getting away with fraudulent actions against the government. In 1986, the False Claims Act was amended to raise the total compensation given to people who reported fraudulent actions, or whistleblowers. If a whistleblower works with a lawyer then it may be possible for them to get three times the amount the government would get in damages and also get additional compensation for general fines.
For more information, please contact whitsleblower and qui tam attorney Ed Wallis at 1-800-632-1404 or send Mr. Wallis an email below for a free initial consultation.