No one likes a snitch in petty situations, but in the face of corporate fraud, employee whistleblowers are some of the most invaluable individuals to society. While employees may try to seek recourse for improper employer actions internally, they will often find this path closed off to them. A company’s internal human resources department will more often than not side with the employer and not with an employee who is attempting to divulge negative intel about the company. As such, employees are often left with no choice but to blow the whistle on their employer’s unruly conduct through other outlets. Listed below are just a few reasons why employee whistleblowers are so important. If you have reason to believe your employer is engaging in fraud of any sort, contact the experienced whistleblower attorneys at Willoughby Brod LLP today to have your case reviewed for free by a legal professional.
Employee whistleblowers have an insider’s view.
Employees who work closely alongside the mastermind of the fraud typically have a unique, and superior, vantage point into the fraud that is being committed. Not only are they able to detect fraud at the source, but they are sometimes the only person who is aware of the fraud. Thus, it is crucial that employees who detect fraud within their companies report the fraud as quickly as possible. By reporting fraud in a timely fashion, an employee whistleblower can not only prevent damage to potential victims of the fraud, but also ensure a higher likelihood that he or she receives the highest reward possible from the government for reporting the fraud.
Fraud is expensive to citizens.
You may be wondering how much you can really help as an employee whistleblower, and the numbers paint the clearest picture. From 1986-2016, recoveries made from whistleblower cases under the False Claims Act alone totaled over $28 billion. That is $28 billion that could have ended up in the hands of fraudsters rather than back in citizens’ pockets. By blowing the whistle on fraudulent acts, you are not only protecting those who are directly harmed by the fraud but also sending a message to fraudsters that the actions they wish to engage in are unacceptable and will not go undetected.
The majority of corporate fraud is reported by employee whistleblowers.
42% of corporate fraud is detected by tips from employee whistleblowers. That is significantly higher than competing sources of tips for corporate fraud, such as internal and external audits, management reviews, accidents, law enforcement, and confessions. Because employees are so close to the source of the fraud, they are oftentimes the best source for tips.
One fear that potential whistleblowers sometimes have is that they may be punished or retaliated against in their workplace should their employer find out that they blew the whistle on the company’s fraudulent conduct. Luckily, employer retaliation against whistleblower employees who provided tips that their employer was violating the False Claims Act (FCA) and the California False Claims Act (CFCA) is prohibited at both the federal and state level.
If you believe your employer is acting fraudulently in violation of the FCA or the CFCA, contact a whistleblower attorney at Willoughby Brod LLP today to learn more about your options. Remember that you are the best resource for combating fraud and protecting citizens. Contact us today at (800) 427-7020 or visit us online to schedule your confidential and free consultation.
(image courtesy of Simon Abrams)