Many violations of the law go unreported by employees with knowledge of them because they fear retaliation.  Our livelihoods, health insurance, and much more are often dependent upon our jobs and the fear of losing a job is consuming.  Whistleblower laws generally provide a remedy for the victims of retaliation in order to encourage employees to come forward with evidence that will uncover wrongdoing.

Most laws designed to protect workers, such as anti-discrimination laws, health and safety laws, and wage and hour protections also make it illegal for employers to retaliate against employees who engage in conduct that the law protects.

Despite these clear protections, researchers have found that whistleblower retaliation is actually on the rise.  According to the Ethics Resource Center (ERC), about 45 percent of all employees observe misconduct or fraud each year.  The majority of these employees, some 65 percent, report this misconduct.  One in five of those reporting employees, or 22 percent, are retaliated against for doing so.  This figure is up from 12 percent in 2009.  Equally troubling, the types of retaliation exerted have become more direct.  Rather than giving employees a cold shoulder, those employers who do retaliate are doing so with demotions, firings, pay cuts, and even outright harassment or violence.

These findings are troubling because, even with the many incentives and protections afforded to whistleblowers on the legal front, potential whistleblowers are unlikely to step forward when they face such imminent and serious retaliation.

Employers should take note of the ERC’s findings because they also highlight potential troubles for those employers who allow retaliation.  The study found that most employees have no desire to get the government involved in the matter.  Rather, they prefer to work within the company to address the wrongdoing they see occurring.  It is only when their efforts are frustrated by inaction or retaliation that they reach out to the government as a method of last resort.  Employers should be wary of this fact, as once the government is involved serious sanctions may be imposed and bad press will arise.

Employers should do all they can to promote internal reporting and protect whistleblowers.  This means creating an atmosphere of honesty within the company so that employees will feel comfortable coming forward.  It also means developing an easy and systematic way internally report concerns.  Employees must be educated on how to report their concerns.  Employers should create a zero tolerance policy for retaliation and address all complaints in a swift manner.

If you are an employee who has made a complaint concerning wrongdoing and feel you have been retaliated against, contact a whistleblower attorney in your area as soon as possible.  Retaliation is against the law and your attorney will ensure the unlawful treatment you have received will be corrected and punished.

Barrett Law PLLC:  Mississippi Whistleblower Attorneys Assisting Those Who Have Experienced Retaliation

Whistleblowers play an important role in our society, bringing to light fraud and wrongdoing occurring in workplaces across the U.S.  While these whistleblowers should be rewarded for their actions, far too many find themselves instead the victims of retaliation.  If you believe you have been retaliated against for your lawful whistleblowing conduct, the Mississippi Whistleblower Attorneys at Barrett Law PLLC can help.  We will assist you in the filing of a qui tam action and correct any mistreatment you have experienced due to your whistleblowing activities.  Our experienced whistleblower attorneys understand the complexities involved in this field of law and will navigate you towards the best possible outcome.  For exceptional representation with your whistleblower case, call Barrett Law PLLC today at 1 (601) 790-1505 to schedule your free consultation.

Recently, the Office of Special Counsel honored three physicians for coming forward to reveal gross wrongdoing occurring at the Veterans Affairs Department.  The Office of Special Counsel recognizes that the revelations of these three physicians brought the nation’s attention to the problems currently surrounding the Veterans Affairs Department and pushed the agency towards reform.

            The three whistleblowers named by the Office of Special Counsel as Public Servants of the Year include:

  1. Dr. Katherine Mitchell:  Dr. Mitchell tried for years to alert VA officials to the mistreatment of patients occurring at the Phoenix VA Medical Center.
  2. Dr. Phyllis Hollenbeck:  Dr. Hollenbeck, along with her colleague Dr. Sherwood, reported major wrongdoing occurring in the Jackson, Mississippi VA, which included corruption, fraud, and chronic understaffing.
  3. Dr. Charles Sherwood:  Dr. Sherwood, along with Dr. Hollenbeck, was instrumental in revealing the fraud and patient mistreatment occurring in the Jackson, Mississippi VA Hospital.

The ceremony honoring these three Public Servant of the Year recipients took place in Washington, D.C.  Before receiving their awards, the three recipients shared their stories of frustration, mounted after years of attempting to alert officials to the wrongdoing they saw occurring within the VA system.

Dr. Sherwood credited the Office of Special Counsel with receiving and responding to his reports, after the VA willfully ignored such concerns for 15 years prior.  Dr. Hollenbeck, who considers Dr Sherwood a role model, did not want to become a whistleblower, but when she was asked to violate laws, she had to do something.

The VA is now encouraging whistleblowers to come forward.  It has created several new initiatives, including an “idea house,” which is designed as a forum for employees to suggest ways to improve the hospital.  The VA still has a ways to go and what it will look like once the transformation is complete is not clear.

The three whistleblowers have applauded the efforts of the VA thus far and recognize that the organization has done much to fix the wrongdoings these three identified.  Dr. Mitchell cautions that she feels there needs to be more done to protect whistleblowers and to ensure whistleblowers do not become the subject of retaliation.  She states that far too many employees do not come forward because they fear losing their jobs.  The only way to ensure the long term success of the VA and progress moving forward is to address the anti-whistleblowing culture that exists within it.

For now, Dr. Hollenbeck continues to work in her position at the VA, though she is sure some in her department would rather see her go.  The story of these three whistleblowers demonstrates the undeniable importance of whistleblowers everywhere.  Had these brave individuals not stepped forward, the wrongdoing occurring throughout the VA system may have continued on for years to come.

Barrett Law PLLC:  Mississippi Qui Tam Attorneys Assisting Brave Whistleblowers    

Without whistleblowers like the physicians honored by the Office of Special Counsel, serious fraud and wrongdoing would likely continue uninterrupted for years.  The role of the whistleblower is a vital one; protecting the U.S. government and our citizens.  The Mississippi physicians who revealed the VA’s serious wrongdoing stand to be acknowledged for their brave contribution, as the Special Counsel now has.  If you have knowledge of wrongdoing and are considering blowing the whistle, the Mississippi Whistleblower Attorneys at Barrett Law PLLC can help.  We understand the complexities involved in qui tam and other whistleblower actions and will guide you each step of the way.  For exceptional representation with your whistleblower case, call Barrett Law PLLC today at 1 (601) 790-1505 to schedule your free consultation.

Any individual that brings a qui tam action is referred to as the “relator.”  There is much confusion surrounding who can bring a qui tam action and thus, become a relator.  Relators need not be personally harmed by the defendant; rather, the qui tam action is generally based on the relator’s first hand, independent knowledge of the defendant’s wrongdoing.

The following is a look at some of the most common relators:

  • Employees:  Current employees will often bring qui tam actions after they have made unsuccessful attempts to stop the fraud from occurring at their workplace through internal company channels.  However, employees can bring a qui tam action even if they were involved in the fraud or other wrongdoing and did not take action to stop it.  Any employee who files a qui tam action is protected from workplace retaliation under the False Claims Act.
  • Former Employees:  A former employee has the right to bring a qui tam action, and most do so after losing their jobs because they reported their employer’s wrongful conduct.
  • Contractors or Subcontractors: Contractors or subcontractors come in as generally independent contractors, but they work closely with the other individuals involved on the project.  Sometimes, contractors or subcontractors will come across first hand information of fraud occurring against the government, which will usually give them the right to bring the qui tam action.
  • Competitors: Competitors similarly interact frequently with rival businesses. In conversations and exchanges of information, a competitor business may come across direct evidence of false claims being submitted to the government.

This list is not all inclusive because the relator bringing the lawsuit need not have one specific type of relationship with the defendant.  The most important and necessary requirement is that the relator possess information concerning fraud or wrongdoing which the general public would not be aware of.

The Important Role of the Relator

Our qui tam laws allow private individuals to blow the whistle on fraud being committed against the U.S. government.  Our government does not have the resources to uncover and challenge every instance of fraud on its own.  Accordingly, the government and the American taxpayers rely heavily on whistleblowers to uncover instances of fraud through their first-hand knowledge.

This reliance on whistleblowers appears to be effective.  Between the years 2000 and 2006, the Department of Justice recovered over $12 billion in civil fraud actions.  Whistleblowers accounted for $7 billion or 66 percent of these recoveries.

Recognizing the important of whistleblowers, Congress continues to strengthen whistleblower laws and increase awards so that individuals like you will come forward and expose costly fraud.

Barrett Law PLLC: Decades of Experience Assisting Relators in Qui Tam Actions Across Mississippi and the Southeast.

When individuals first set out exploring the whistleblower process, few are aware of what the term relator means and the sheer importance of their role in the qui tam action to follow.  We hope the brief overview above gives you some preliminary information as to who can be a relator, what a relator does, and why the relator is so important.  If you believe that fraud is occurring in your workplace, former workplace, or at a rival company, the Mississippi Qui Tam Attorneys at Barrett Law PLLC can help.  Since 1936, we have assisted qui tam relators in a wide variety of qui tam actions.  We have the knowledge, experience, and dedication to strongly bring this highly complex action.  For an individualized assessment of your potential qui tam action, call Barrett Law PLLC today at 1 (601) 790-1505 to schedule your free consultation.

While Medicare does not have an official estimate as to the amount of money loss to fraud each year, the Federal Bureau of Investigations estimates that fraud occurs in three to ten percent of all health care billings.  Each year, Medicare expenditures exceed $560 billion.  Applying the FBI percentages to this amount, the cost of Medicare fraud annually can be estimated at somewhere between $17 and $57 billion.

What is Medicare fraud?

Medicare fraud is defined as the collection of Medicare health care funds based on fraudulent actions.  There are several types of Medicare fraud, but all have the same ultimate goal—to illegitimately collect funds from the Medicare program sponsored by the U.S. government.  Some types of Medicare fraud include:

  • Patient billing:  A patient participating in the scam provides his or her Medicare number in exchange for kickbacks.  The provider then bills Medicare for whatever services and the patient is instructed to report he or she did receive the alleged medical treatment.
  • Phantom billing:  A medical provider bills Medicare for procedures or tests that were never performed or were unnecessary, or for unnecessary equipment or equipment that is used but billed as new.
  • Unbundling and Upcoding:  When the medical provider or someone else associated with billing inflates bills by using billing codes that indicate more expensive procedures were performed.

How are Medicare whistleblower cases brought?

If you are an employee and you suspect Medicare fraud is occurring in your workplace, you can bring a claim under the False Claims Act.  This suit is known as a qui tam action.  The suit is essentially brought by you, the whistleblower, on behalf of the government.

What can I expect to receive under the False Claims Act?

Those that are found to have violated the False Claims Act will be liable for three times the amount of funds that the government has been defrauded.  A whistleblower who brings the Medicare fraud action can expect a reward of between 15 and 30 percent of the total recovery awarded to the government.

Is my job at stake for bringing a whistleblower action?

The False Claims Act protects employees who bring a qui tam lawsuit and experience retaliation from their employer because of their whistleblowing actions.  If a whistleblower is fired, threatened, demoted, harassed, or otherwise discriminated against his or her employer due to the qui tam action, the employee will be protected.  Reinstatement may be granted or back pay and damages, depending upon the employer’s actions and employee’s wishes.

Barrett Law PLLC: Mississippi Whistleblower Attorneys Assisting Clients with Medicare Fraud Reporting Actions

Medicare fraud is a tremendous problem in the U.S., costing the government and taxpayers billions of dollars each year.  With the costs of healthcare rising and the population of the U.S. continuing to age, it is becoming more and more important that individuals like you speak out about suspected Medicare fraud.  Medicare fraud actions are typically brought under the False Claims Act, which allows the whistleblower to recover a portion of the funds recovered by the government in the action.  This can be significant and all whistleblowers must ensure their rights are protected.  The Mississippi Whistleblower Attorneys at Barrett Law PLLC have assisted numerous Medicare fraud whistleblowers across the state and much of the southeast since 1936.  Our attorneys will strive to see that your rights are fully protected and you receive the compensation you deserve for bringing the action.  To find out more about your potential whistleblower action, call Barrett Law PLLC today at 1 (601) 790-1505 to schedule your free consultation.

Each year, the government recovers billions of dollars thanks to whistleblowers.  The last few years have seen a host of high profile whistleblowers, from Edward Snowden and Chelsea Manning to J. Kirk McGill. Individuals and corporate whistleblowers who come forward in an effort to protect the government from fraud serve a vital function in our society.

These whistleblowers are entitled to special protections and incentives due to their brave actions under the False Claims Act.  The False Claims Act provides that individuals with knowledge that another person or entity may have received payments for false claims submitted to the government may sue on behalf of the government to recover these funds.

The protections afforded false claims whistleblowers are critical, as these whistleblowers come forward to protect the government and taxpayers from fraud perpetuated by the fraudulent behavior of doctors, hospitals, pharmaceutical companies, government contractors, and any other group that regularly bills the government.  Whistleblowers face high stakes in coming forward, risking their personal and professional lives.  Accordingly, it is important that whistleblowers be protected and rewarded for their actions.

In 2012 alone, the Department of Justice reported that it recovered over $5 billion through just False Claims Act cases.  Healthcare fraud in 2013 boasted convictions and settlements well exceeding $78 million.  These figures do not even include other common types of fraud that false claims whistleblowers often reveal, including education fraud and military contract fraud.  These recoveries would not be possible without the assistance of whistleblowers as the government does not have the resources available to uncover on its own.

Political whistleblowers serve an equally important function but are not always rewarded or viewed the same by the government.  As in the case of Edward Snowden and Chelsea Manning, individuals who both felt they were going a service to their country by exposing information that only they had access to, but instead of being thanked, they were prosecuted by the government.

Chelsea (formerly Bradley) Manning’s disclosures initiated a national discussion on operations in Afghanistan and Iraq and of government whistleblowing.  Edward Snowden’s massive information release revealed alarming facts concerning the National Security Agency’s data collection process and privacy intrusion which the public is still grappling with.

Whether it be reporting fraud occurring against the government or fraud committed by the government, whistleblowers serve a vital function in society.  Whistleblowers of all types put their own personal and professional lives on the line to assist, ultimately, the public as a whole.

If you are considering blowing the whistle, it is imperative you retain the assistance of an experienced whistleblower attorney who will ensure your interests are fully protected.  Claims arising out of the False Claims Act will entitle you to compensation for any recovery made by the government, which can be substantial.  All whistleblowers will require an attorney in the event any retaliatory action is taken in response to their lawful whistleblowing.

Barrett Law PLLC: Assisting Whistleblowers in Performing Their Important Task

Whistleblowers are an extremely important part of the American landscape and economy.  Whistleblowers who uncover false claims, fraud, or other misuse of government funds will assist taxpayers along with the U.S. government. The Mississippi Whistleblower Attorneys at Barrett Law PLLC have assisted countless whistleblowers across the state and much of the southeast since 1936.  Our attorneys understand the complexities involved in any whistleblower action and will strive to achieve the results you desire. For experienced representation by a team of aggressive, dedicated, and knowledgeable attorneys, call Barrett Law PLLC today at 1 (601) 790-1505 to schedule your free consultation.

The following is a look at some questions most commonly asked by Mississippi whistleblowers or potential whistleblowers concerning the Federal False Claims Act.  Your licensed whistleblower attorney can provide you with individualized information and an assessment of your potential qui tam action.

What is the False Claims Act?

The False Claims Act is a federal law originally enacted during the Civil War.  This law makes it illegal for any person or entity to defraud the U.S. government.  Whistleblower or qui tam provisions are found within the act.  These provisions offer legal incentives to encourage individuals who are aware of fraud occurring against the government to step forward and reveal this critical information.

What does qui tam mean?

Many people are not familiar with the term “qui tam.”  Qui tam is actually a Latin phrase which roughly translates into English as “he who brings an action for the kings as well as himself.”  Qui tam is the title of the whistleblower provisions with the False Claims Act, and it allows civilians to file claims against wrongdoers on behalf of the federal government.

What actions are prosecuted under the False Claims Act?

Any actions involving fraud being perpetuated against the government, particularly those involving the taking of money or services, will be illegal under the False Claims Act.  The most common claims brought under the act include Medicaid and Medicare fraud, customs fraud, conspiracies to raise prices, false billings, fraud against the U.S. Postal Service, construction fraud, fraud against government contractors, and public works fraud.

Who can become a whistleblower?

Any individual who uncovers fraud against the government can bring a qui tam action.  Most often, whistleblowers are corporate employees who discover their employers are committing fraud.  However, medical patients, business subcontractors, and customers are also commonly whistleblowers.  There is not a restriction on who can bring this action.

Are whistleblowers protected under the False Claims Act?

All whistleblowers that meet the criteria under the False Claims Act will be protected.  If a whistleblower loses his or her job as a result of filing a qui tam action, the former employee can sue the employer for wrongful termination and retaliation, seeking damages stemming from the loss of the job and ensuing emotional distress along with potentially punitive damages.  The whistleblower could also be entitled to attorney’s fees.

What compensation do whistleblowers receive?

Whistleblowers can receive a significant sum for filing a qui tam action.  If the fraud claims are substantiated and the government recovers for losses associated with the fraud, the whistleblower could be entitled to more than 15 percent of the monetary amount recovered by the government.

Will I have to disclose my identity to bring the qui tam action?

You will need to disclose your identity to the government, but your name will remain confidential for at least 60 days from the time you file the qui tam action.  If the government selects your case, your identity will then be revealed.

Barrett Law PLLC: Mississippi Whistleblower Attorneys Assisting With Qui Tam Actions

Qui tam actions brought under the federal False Claims Act can be complex and will require the assistance of an experienced and dedicated attorney who will fight to see that you obtain the recovery you deserve for bringing to light fraud occurring against the government.  The Mississippi Whistleblower Attorneys at Barrett Law PLLC have assisted qui tam plaintiffs for over 75 years.  Our aggressive whistleblower attorney team will navigate you through the qui tam process towards a full recovery, protecting your interests fully along the way.  For dedicated representation by an experienced attorney team, call Barrett Law PLLC today at 1 (601) 790-1505 to schedule your free consultation.

The Ebola virus disease, also commonly referred to as Ebola hemorrhagic fever, has reached epidemic levels in West Africa.  Over 4,500 individuals have died as a result of this deadly disease and twice that many have become infected.  So far, three cases of Ebola have been diagnosed in the U.S.  The first case was that of Thomas Duncan.  Duncan flew to Dallas, Texas from Liberia to visit family.  He appeared days later at the Texas Health Presbyterian Hospital with symptoms, but was sent home.  The hospital later admitted this was a mistake.  He reappeared three days later and tested positive for Ebola.  Unfortunately, Duncan died on October 8.

Three days after Duncan’s death, Nina Pham, a nurse who cared for Duncan, tested positive for Ebola.  The hospital believes a breach in protocol lead to the infection, but has not elaborated on what this breach was.  Soon after Pham was confirmed to have Ebola, another nurse, Amber Vinson, also tested positive.  Vinson had recently flown cross-country to plan her wedding, spurring the CDC to add several more individuals to its watch list.  Health officials and the Texas Health Presbyterian Hospital continue to fail to provide an explanation as to how Vinson contracted the illness.

One nurse at the Texas Health Presbyterian Hospital has stepped forward as a whistleblower.  Briana Aguirre, joined by her attorney, agreed to an interview with Anderson Cooper.  She expressed disappointment with the hospital’s lack of transparency, which has led much of the public to continue to blame the nurses, rather than the hospital’s actions.  Aguirre revealed alarming actions taken by the hospital during the treatment of Duncan, including placing trash bags full of medical waste simply in the hallway of the isolation unit when the garbage room became full.  She also expressed concern over the lack of safety gear provided to nurses and the general chaos and uncontrolled environment that she believes contributed to the spread of the dangerous disease.

Aguirre’s attorney informed Anderson Cooper that she is entitled to some whistleblower protections in Texas, though the laws are not as strong as elsewhere.  He stressed that his client is not seeking to obtain monetary compensation through her whistleblowing actions.  Rather, she wants to know that her job is secure and that she has done what she can to bring to light what she feels is troubling actions occurring at the hospital.

The recent Ebola outbreak and threat of future cases in the U.S. has created much panic.  In the coming months, it will be important for healthcare workers like Briana Aguirre to blow the whistle when they feel a hospital or medical facility’s actions are putting others at risk.  Mississippi whistleblowers should be aware that federal and state laws protect whistleblowers like Aguirre, preventing their termination and sometimes allowing for the award of monetary compensation.

Barrett Law PLLC: Award Winning Mississippi Whistleblower Attorneys

Whistleblower claims are often complex and may involve additional issues of discrimination or job termination due to the whistleblower’s activities.  All whistleblowers will require a thorough, dedicated, and knowledgeable attorney to guide them through the whistleblowing process.  The Mississippi Whistleblower Attorneys at Barrett Law PLLC have assisted brave whistleblowers through the filing of qui tam actions for over 75 years.  Our zealous attorney team has the resources, innovation, and level of experience you need to obtain the best possible legal outcome.  At Barrett Law PLLC, we offer a free consultation to all new clients and operate on a contingency fee basis.  For representation of unmatched excellence, call Barrett Law PLLC today at 1 (601) 790-1505 to schedule your free consultation.

This past summer, a former executive of Conair Corp., a personal care product company, reported that she was fired for revealing an alleged fraud her company was committing against retail giant and megastore, Wal-Mart. Specifically, Barbara Laubenstein filed a whistleblower complaint against her former employer, Conair Corp., of East Windsor, New Jersey.

According to the complaint, Laubenstein started working as vice president of sales for the Allegro Division within Conair back in 2009.  In 2012, the Allegro Division sold over $30 million worth of products to Wal-Mart, who was Conair’s largest customer.  During this time, the company additionally acted as an advisor to Wal-Mart, offering consumer business advice, plans, and marketing to the retail giant.

Laubenstein alleges that she uncovered while employed by Conair that the company would cover the UPC labels on their old products with UPC labels of current products.  The old products would then be shipped, sold, and marketed as the new products.  In this manner, Conair was able to essentially unload its old, stagnant, and inferior products while still charging Wal-Mart for the new, superior personal care goods.

Laubenstein, according to the complaint, was terminated as vice president for the Allegro Division in July of 2013 after alerting her boss to the alleged inventory fraud.  Laubenstein is now seeking an unspecified amount of damages due to her wrongful termination.

Laubenstein’s case is troubling in that it appears she was fired for taking lawful action by filing a whistleblower complaint.  Under federal and several Mississippi state laws, employees cannot be fired for using the proper channels to report illegal or fraudulent activity.  You may be entitled to whistleblower protection and have grounds for a lawsuit in Mississippi if your employer terminated your position or otherwise retaliated against you for your actions in:

  • Reporting fraud or other criminal acts
  • Reporting safety violations, including OSHA violations, or other environmental abuses
  • Filing a disability or workers’ compensation claim
  • Refusing to engage in criminal acts
  • Filing a discrimination or harassment claim

Most employers will not fire a whistleblower outright.  They may start by suddenly and without justification citing the employee for poor performance, insubordination, or other violations.  As the negative marks on the employee’s record accumulate, the employee will likely be passed over for promotions or raises, demoted, or eventually terminated.

An experienced whistleblower attorney will uncover the true reason for your termination, even when the employer attempts to conceal it.  Further, if your employer caused your workplace to become hostile to the extent that you made the decision to leave your job, you may still be able to bring a lawsuit for constructive discharge.  Wrongful termination and constructive discharge allow for the same legal remedies.

As a result of bringing a wrongful termination suit, you may be allowed to be reinstated at your prior job, though most have no desire to pursue this option given the events that transpired.  You could receive damages, including front and back pay, emotional distress, fines, job retraining, and even punitive damages.

Barrett Law PLLC: Mississippi Whistleblower Attorneys Proudly Representing Wrongfully Terminated Employees

Losing your job due to your lawful whistleblower activities is both traumatic and highly illegal.  Federal and state laws are in place to prohibit employers from terminating those employees who reveal fraud or other criminal acts.  If you have been terminated or made to quit your job due to a hostile work environment that you believe is associated with a whistleblower complaint, the Mississippi Whistleblower Attorneys at Barrett Law PLLC can help.  Our aggressive whistleblower attorney team will uncover the true reason for your termination and seek a full recovery for your damages sustained.  For representation of unmatched excellence, call Barrett Law PLLC today at 1 (601) 790-1505 to schedule your free consultation.

As part of its initiative to catch taxpayers who are paying fewer taxes than they actually owe to the U.S. government, Congress has enacted the IRS Whistleblower Rewards Program.  The Whistleblower Rewards Program provides substantial incentives to individuals who come forward and identify other persons, businesses and corporations, trusts, partnerships, and other entities that are underpaying their taxes in any way, whether it is the result of fraud, uncertain tax positions, or just simple mistake.

The incentive is a mandatory award to the person or whistleblower who comes forward to reveal the underpayment of taxes to the IRS.  This award can equal up to 30 percent of any taxes, interest, and penalties collected by the IRS from the underpaying taxpayer. The IRS Whistleblower Protection was enacted by the Tax Relief and Health Care Act of 2006.  It does not place a cap on the dollar amount of the award, so those who come forward and identify a large underpayment of taxes by another taxpayer stand to potentially collect millions of dollars in award monies from the government for their efforts.

Tax Whistleblower Reward Amounts

In Section 7623 of the Internal Revenue Code, whistleblowers are allowed an award of between 15 and 30 percent of the taxes ultimately collected by the IRS if they make a substantial contribution to the collection.  The award will be calculated based on the total of the tax, interest, penalties, and any additions to tax collected by the IRS as a result of the information provided by the whistleblower.  Rewards can also issue for whistleblowers who report information about an underpayment that would reduce the amount of the refund claimed by the taxpayer.  The award is not capped.

The Whistleblower Rewards Act is targeted at unveiling large underpayments of taxes.  A person will only receive an award under the program if the total underpayment of the tax, along with interest, penalties, and additions to tax,   ultimately collected by the IRS exceeds $2 million.  The income of the individual taxpayer who owes taxes must exceed $200,000 in the year the tax was due.  Whistleblowers should be aware in attempting to make calculations as to underpayment, penalties range from 20-40 percent of the tax due.  Compounding interest combined with penalties will often result in the doubling of the total amount of deficiency taxes that would otherwise have been paid if submitted in a timely manner.

Anyone who has participated in the Whistleblower Rewards Program and received no award or an award they feel was less than they deserve can appeal the determination to the United States Tax Court.  Your licensed whistleblower attorney will guide you through the entire process of reporting tax fraud to the ultimate award of the monies you deserve.

Barrett Law PLLC: Assisting You in Blowing the Whistle on Tax Fraud

Under the IRS Whistleblower Rewards Program, you could receive an award of up to 30 percent of all taxes, interest, and penalties collected by the IRS as a result of your crucial information.  Tax fraud costs the U.S. government billions of dollars each year, and it takes brave whistleblowers like you to put a stop to this illegal activity. The seasoned Mississippi Whistleblower Attorneys at Barrett Law PLLC have over 75 years experience assisting individuals in a wide variety of whistleblower actions.  Our attorneys will assist you in the art of dealing with the IRS so that you collect the award you deserve for reporting tax fraud.  At Barrett Law PLLC, we offer a free consultation to all new clients and operate on a contingency fee basis.  For representation of simply unmatched excellence, call Barrett Law PLLC today at 1 (601) 790-1505 to schedule your free consultation.

Recently, Attorney General Eric Holder called on Congress to increase the financial incentives presently offered to corporate insiders who blow the whistle on white collar crime.  Holder cited to the troubling return of many of the risky behaviors that led to the 2008 financial crisis as requiring increased incentives to encourage whistleblowers.

Holder’s remarks came the same week that Lehman Brothers’ collapse sent the financial markets into chaos six years ago.  Holder stated that now, the government has the opportunity to leverage the lessons, insights, and experience learned from investigating the last financial crisis to the potential for more issues unfolding around us today.

For years, the Justice Department has been harshly criticized for failing to criminally prosecute the senior officers of banks that pushed risky mortgage securities as part of the overall web of deception that caused the monumental burst in the U.S. housing market.

Holder countered such criticisms by noting that the Justice Department recently obtaining guilty pleas from the French bank BNP and Swiss bank Credit Suisse.  These verdicts were said to end significant speculation that some banks are too big to prosecute.

Holder did stress, however, that reconstructing crimes after the fact is both complex and difficult.  Building a case against often insulated senior officers, who have often shielded themselves skillfully with written disclosures and advice of counsel defenses is never easy.  As such, Holder states, it is important to uncover and police illegal activity as it occurs.  To accomplish this, the Justice Department needs whistleblowers as cooperating witnesses.

Currently, the federal False Claims Act offers whistleblowers who alert authorities to fraud, scams, or crimes against the government a recovery of up to one third of what the investigators recover for taxpayers.  This figure has led to the recovery of more than $22 billion since just 2009.

However, in recent years, the Justice Department has increasingly relied on a 1991 law designed to build mortgage-related cases accusing banks and other financial institutions of internal fraud.  These cases have led to major settlements with large financial institutions, including Citigroup, JP Morgan, and Bank of America.

The problem with this law is that is caps the recovery of whistleblowers at $1.6 million.  This sum, for an individual who is likely risking his or her entire career to cooperate with investigators and uncover fraud, is paltry, according to Holder.  Holder pointed out that in the last year, the collective bonus pool was over $26 billion and the median pay among executives is $15 million and rising.

Employees with lucrative careers in the financial sector are unlikely to be induced to blow the whistle for the sum of $1.6 million.  As such, Holder is urging an increase in incentives under the Financial Institutions Reform, Recovery, and Enforcement Act.

Barrett Law PLLC: Mississippi Whistleblower Attorneys Handling Even the Most Complex of Qui Tam Actions

Bringing a whistleblower claim requires courage, dedication, and experienced legal guidance.  Whistleblower actions are often complex and can take time to successfully mount.  The award winning Mississippi Whistleblower Attorneys at Barrett Law PLLC have over 75 years experience guiding brave whistleblowers through the filing of qui tam actions.  We have the skill, knowledge, and passion to bring even the most complex of whistleblower actions and will always fight for your maximum recovery.  At Barrett Law PLLC, we offer a free consultation to all new clients and operate on a contingency fee basis.  For representation by a team of renowned whistleblower attorneys, call Barrett Law PLLC today at 1 (601) 790-1505 to schedule your free consultation.