Whistleblower

Whistleblowers are essential for maintaining the integrity of our economic system. Their ability to notice, report, and help stop fraud and misconduct in the most important sectors of our economy has a strong history and is of paramount importance in modern affairs.

Whistleblower provisions in American date back as far as the Civil War. It was well known that suppliers of goods for the Union Army often shortchanged the government by selling sick horses, faulty ammunition, stale food, and other unusable or dangerous products. In order to combat this fraud, President Lincoln imposed the first American whistleblower provision which encouraged average citizens to report misconduct in exchange for a reward. The same principle lies behind today’s whistleblower provisions, which cover a much wider array of goods and services.

Today, whistleblowers can report fraud or misconduct under either:

• The False Claims Act
• Sarbanes-Oxley
• IRS provisions
• The Dodd-Frank Financial Reform Act

These provisions allow average Americans to report the defrauding of the government, tax evasion, and even securities violations in public and privately held companies. It would be impossible for DOJ, the SEC, or any other number of regulatory organizations to police fraud alone. With the help of whistleblowers, companies and individuals who steal from the government and the American people are far more likely to be held accountable. It is our duty as citizens to be vigilant. Whistleblowers help preserve the integrity of the American economy and financial system, they are integral to our safety and future prosperity.