To qualify for a whistleblower reward, you must provide original information about misconduct. For information to be “original,” it must come from non-public sources—that is, something other than media reports, public statements, or reports issued by the company. In some instances, a personal analysis that is based on public sources may qualify as original information, if the analysis itself provides a unique form of evidence.
While you don’t have to be a direct witness to the reported fraud, it is important to provide investigators with more than just a suspicion or guess that misconduct has occurred. A strong whistleblower report, with the best chance of qualifying for an award, includes specifics and documentation about alleged activities.
There are different procedures for various whistleblower programs, depending on federal statutory requirements.
Many whistleblower programs are administered by federal agencies directly, such as the SEC and CFTC programs. For these programs, whistleblowers must submit a tip through an agency form or via email, depending on the program. Rules on how to submit tips anonymously vary between programs.
For the False Claims Act and similar state laws, claims must initially be filed in court and have very specific procedural requirements. The most important of these requirements is that the case is filed under seal, which means that the company you are reporting on generally does not know it has been filed. It also means that you are not allowed to talk about your case with anyone for the whole seal period.
For most whistleblower programs administered by agencies, the conclusion of an investigation will result in either a finding of a violation and the imposition of sanctions, or a finding that no wrongdoing has occurred. Agencies may not proactively notify whistleblowers if their information has led to an enforcement action that qualifies for an award. Instead, agencies post notice on their websites of any action that meets the reward threshold, and the whistleblower must submit an application for a reward.
For False Claims Act claims, the government’s investigation concludes with a determination to either legally join the whistleblower’s claim in litigation (called “intervention”), or to decline joining. If the government does not join, you may continue to pursue the claim on the government’s behalf. This decision requires serious consideration, as the costs are often extremely high and the chance of success relatively low. Your lawyer will be able to counsel you regarding that decision.