Federal Whistleblower Lawyer

Reporting fraud takes courage, and federal law protects and, in some cases, rewards the people who do it. If you have information about securities fraud, fraud on the government, or other corporate wrongdoing, or you were punished for reporting it, a federal whistleblower lawyer can help you protect yourself.

On this page: Retaliation vs. awards · Federal laws · Who is protected · How it works · Before you report · Recovery · Our role and fees · FAQ

Smith Trial Group evaluates federal whistleblower claims for employees and insiders across Southern California, including retaliation claims and claims for whistleblower awards. Attorney Cardon Smith spent years defending Fortune 500 companies in business litigation and served as a law clerk to a federal judge. He knows how corporate legal departments respond when an employee raises fraud, and how federal courts handle these cases. Consultations are free and confidential.

Two Kinds of Whistleblower Claims

Federal whistleblower law generally offers two different kinds of protection, and many people have both:

• Retaliation claims. If you were fired, demoted, harassed or otherwise punished for reporting fraud or illegal conduct, federal laws such as the Sarbanes-Oxley Act, the Dodd-Frank Act and the False Claims Act provide remedies such as reinstatement, back pay and, under some laws, double back pay.
• Award (reward) claims. If you have original information about fraud, some federal programs pay whistleblowers a share of the money the government recovers. These include the False Claims Act’s qui tam provisions, the SEC Whistleblower Program and the IRS Whistleblower Program.

California law adds its own protections, including Labor Code 1102.5 and the California False Claims Act. See California whistleblower retaliation.

The Main Federal Whistleblower Laws

Sarbanes-Oxley Act (SOX)

Protects employees of publicly traded companies, and many of their subsidiaries, contractors and subcontractors, who report securities fraud, shareholder fraud, mail or wire fraud, or violations of SEC rules. A retaliation complaint must generally be filed with OSHA within 180 days. See SOX whistleblower retaliation.

Dodd-Frank Act and the SEC Whistleblower Program

The SEC pays awards of 10 to 30 percent of the monetary sanctions collected when a whistleblower voluntarily provides original information that leads to a successful enforcement action with sanctions over $1 million. Dodd-Frank also prohibits retaliation and allows double back pay, but its retaliation protection generally requires that the employee reported to the SEC itself. A similar program at the Commodity Futures Trading Commission covers commodities and derivatives fraud.

False Claims Act (qui tam)

Allows a private person, called a relator, to file a lawsuit on the government’s behalf against anyone who defrauds a federal program, such as Medicare, Medicaid, defense and government contracts, grants and loan programs. A successful relator generally receives 15 to 30 percent of the recovery. The law also prohibits retaliation against employees who try to stop the fraud. See qui tam and False Claims Act cases.

Other federal programs

The IRS Whistleblower Program pays awards for information about significant tax underpayments, and other federal laws protect workers who report safety, environmental, transportation and financial violations. Many of these laws have very short filing deadlines.

Who Is Protected

• Employees, including managers and executives, who report fraud internally or to the government
• Employees who refuse to participate in fraud
• Employees who assist an investigation or testify
• Under some programs, contractors, consultants and other insiders with original information

Most of these laws protect a report made in good faith based on a reasonable belief, even if the conduct ultimately is not proven to be illegal.

How a Federal Whistleblower Case Works

1. Confidential evaluation. We review what you know, how you know it, what you have reported, and what has happened to your job.
2. Choosing the right path. A retaliation claim, an award claim, or both, and under which laws. The order of steps matters, because some programs reward the first person to report and some require reporting to a specific agency.
3. Filing. A SOX complaint is filed with OSHA. An SEC tip is submitted on the SEC’s form, and can be submitted anonymously through a lawyer. A qui tam case is filed in federal court under seal, and served on the government rather than the defendant.
4. Investigation. Government agencies may investigate for months or years. During a qui tam seal period, the case must stay confidential.
5. Resolution. Retaliation claims can resolve through settlement, an administrative decision or a federal court case. Award claims are paid after the government collects.

Protecting Yourself Before You Report

• Talk to a lawyer first. The order and method of reporting can affect both your protections and your eligibility for an award.
• Do not discuss the matter publicly or on social media. Qui tam complaints are filed under seal, and public disclosure can create problems.
• Do not take company documents without legal advice. Some documents are privileged or protected, and taking them can create legal exposure. A lawyer can help you preserve evidence the right way.
• Write down a timeline of what you saw, what you reported, to whom, and what happened afterward.
• Watch the deadlines. A SOX retaliation complaint has a 180-day deadline, and award programs generally favor the first to report.

What You May Recover

• Retaliation claims: reinstatement, back pay with interest, double back pay under Dodd-Frank and the False Claims Act, special damages, and attorney’s fees and costs
• Award claims: a percentage of what the government recovers: generally 15 to 30 percent under the False Claims Act, and 10 to 30 percent under the SEC program
• California claims can add emotional distress damages, punitive damages and civil penalties where state law applies

Our Role and Fees

We represent whistleblowers in federal retaliation claims, SEC whistleblower award claims and qui tam cases under the False Claims Act. We handle whistleblower cases on contingency: you pay no attorney fee unless there is a recovery. The consultation is free and confidential.

Related: California whistleblower retaliation · workplace retaliation · wrongful termination · executive employment

Helpful resources: SEC Office of the Whistleblower · OSHA Whistleblower Protection Program · U.S. DOJ: False Claims Act

Frequently Asked Questions

Can I get a reward for reporting fraud?

Possibly. The False Claims Act pays relators generally 15 to 30 percent of the government’s recovery, and the SEC pays 10 to 30 percent of sanctions over $1 million when original information leads to a successful enforcement action. Eligibility rules are strict, so get advice before you report.

Can I report anonymously?

The SEC accepts anonymous tips, but to remain anonymous and still claim an award you must be represented by a lawyer. Qui tam cases are filed under seal, which keeps your identity confidential while the government investigates, although it may become known later.

Do I have to report internally first?

Not always. Some laws protect internal reports, and some programs require a report to a specific agency. Dodd-Frank retaliation protection, for example, generally requires a report to the SEC. A lawyer can help you choose the right path.

What is the deadline for a SOX whistleblower claim?

A Sarbanes-Oxley retaliation complaint must generally be filed with OSHA within 180 days of the retaliation, or of when you learned of it.

Can I be fired for reporting fraud to the government?

Federal and California laws prohibit retaliation against employees who report fraud or refuse to participate in it. If you were punished for reporting, you may have a retaliation claim in addition to any award claim.

How much does a whistleblower lawyer cost?

We handle whistleblower cases on contingency. You pay no attorney fee unless there is a recovery, and the consultation is free and confidential.

Related guides: Retaliated for reporting fraud? · Rewards for reporting fraud · How a qui tam case works · SOX whistleblower deadlines · Signs of workplace retaliation · How long do I have to sue my employer? · Constructive discharge