Other Whistleblower Provisions

Rewards for Reporting Violations of Federal Tax, Insurance Fraud, Environmental and Patent Protection Laws

In addition to the False Claims Act and the various state false claims laws, there are other federal and state statutes that provide financial rewards for individuals who come forward with information on offenders. Some of these laws also offer protection for informants if they are discriminated against in their employment as a result of blowing the whistle. Vogel, Slade & Goldstein will also represent those who blow the whistle on misconduct under laws. Here are just a few examples of such laws:

Federal Tax Fraud

* IRS Whistleblower Rewards, 26 U.S.C. § 7623, provides - - with certain exceptions - - that the Secretary of the IRS shall pay awards of between 15 and 30% of recoveries to persons who provide information that is the basis for an IRS administrative or judicial action leading to an IRS recovery. The overdue taxes, penalties, interest and additional amounts in dispute must exceed $2,000,000, and the taxpayer, if an individual, must have a gross income in excess of $200,000 for any taxable year subject to the action. (See press release on Robert L. Vogel participation in IRS Roundtable Discussion on implementation of this new law.)

Workers’ Compensation and Other Private Insurance Fraud

* The California Insurance Frauds Prevention Act, Cal. Ins. Code Section 1871 et seq., imposes treble damages on those who submit false claims to government or private insurance companies, including workers’ compensation plans. The law, which also prohibits the payment of kickbacks or other inducements in exchange for referrals, provides whistle blowers with rewards equal to 30% of the government’s recovery, or more, and protects informants under the law by imposing penalties on those who retaliate against them.

* The Illinois Insurance Claims Prevention Act likewise imposes treble damages on those filing false claims, including those tainted by kickbacks, on government or private insurance plans. The statute permits private individuals to sue on behalf of the state and to receive up to 50% of the proceeds of the case. As in California, the law provides protections for whistle blowers subject to retaliation.

Violations of Environmental Laws

* The Act to Prevent Pollution by Ships, 33 U.S.C. § 1908(a), provides the Court with discretion to pay up to half of the fines to an informant whose information leads to a conviction under the statute or related authorities.

* The Endangered Species Act, 16 U.S.C. § 1540, requires the Secretary of the Treasury to make financial rewards, with the amount in his discretion, to those providing information that leads to the arrest, conviction, civil penalty assessment or forfeiture of property for violations of the laws and rules protecting endangered species.

* The Obstruction of Navigable Waters, Injury to Harbor Improvements, Wrongful Deposit of Refuse Act (“Refuse Act of 1899"), 33 U.S.C. § 411 provides for fines of up to $25,000 per day for violations of the Clean Air Act, with awards equal to one half of the fines for any person who provided the information that led to the conviction.

Counterfeiting of Patents

* False Markings relating to Patents, 35 U.S.C. § 292, imposes penalties of $500 per violation, and provides that private persons may sue for the penalties, and keep one half of the proceeds.