Deciding to report fraud or misconduct is a courageous act. It often comes with many questions and concerns, a common one being whether whistleblowers are compensated for the risks they take. The simple answer is yes, in many cases, whistleblowers are eligible for significant financial awards. A clear grasp of these programs will equip you to proceed with confidence.
This post will guide you through the basics of whistleblower compensation:
- How whistleblower rewards are determined.
- The laws that enable financial awards.
- The first steps to take if you have information.
Whistleblower Partners, LLP has an exceptional track record of success. We know how to protect your rights and maximize your financial reward.
How Are Whistleblower Rewards Calculated?
Whistleblower awards are generally calculated as a percentage of the total funds recovered by the government as a result of the information you provide. Several U.S. laws and reporting regimes, like the False Claims Act and the SEC Whistleblower Program, establish specific frameworks for these rewards.
Under the False Claims Act, which is often used to combat healthcare and government contract fraud, successful whistleblowers are entitled to receive between 15% and 30% of the government’s recovery. For tips that lead to successful enforcement actions by the Securities and Exchange Commission (SEC), whistleblowers may receive between 10% and 30% of the funds collected. These percentages can translate into substantial awards, recognizing the critical role whistleblowers play in holding organizations accountable.
What Programs Offer Financial Awards?
Several key programs provide for whistleblower awards. The False Claims Act is one of the most powerful tools, allowing private citizens to file lawsuits on behalf of the government against those who have committed fraud. Other major programs include the SEC and Commodity Futures Trading Commission (CFTC) whistleblower programs, which target fraud in the financial markets, and the IRS Whistleblower Program for individuals who report significant tax underpayment. Each program has its own rules and procedures, but all share the goal of incentivizing people with inside knowledge to come forward.
How to Move Forward
If you have discovered fraud or other concerning misconduct and are considering blowing the whistle, your information could be incredibly valuable. The process can feel complex, but you do not have to navigate it alone. The first and most important step is to speak with an experienced whistleblower attorney.
At Whistleblower Partners, we confidentially guide you through the process of understanding your rights and evaluating your claim. We will do our best to ensure you feel supported every step of the way. Contact us for a confidential consultation to discuss your situation and learn how we can help.
