Feb 08
A concerted effort by the IRS to improve its whistleblower reporting program is showing benefits to both sides. IRS whistleblowers collected $312 million in fiscal 2018, a huge increase over the $33.9 million received in the prior year. The IRS collected $1.4 Billion from the tips provided by these whistleblowers. In order to collect an …
Permanent link to this article: https://betweenthenumbers.net/2019/02/irs-whistleblowers-set-new-record/
Jan 19
Economic damages should return a plaintiff to the position they would have been in “but for” the underlying improper act[s] by the defendant. They should not provide a windfall to plaintiff. In a similar vein, whether such damages are taxable is generally related to how the proceeds would have been treated if obtained in the …
Permanent link to this article: https://betweenthenumbers.net/2019/01/when-litigation-proceeds-are-taxable/
Sep 24
A universal risk to companies that employ individuals and engage outside vendors are vendor billing schemes. The most recent instance to hit the news is an alleged kickback scheme involving advertising services provided to Rite Aid. The Central Penn Business Journal (“CPBJ”) reports that a former Rite Aid Vice President of Advertising has tentatively agreed …
Permanent link to this article: https://betweenthenumbers.net/2018/09/alleged-kickback-scheme-at-popular-pharmacy/
Sep 15
The Securities and Exchange Commission (“SEC” or the “Commission”) protects whistleblowers through Rule 21F-17, enacted under the Dodd-Frank Wall Street Reform and Consumer Protection Act, which states that “[n]o person may take any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation.” Prior cases have highlighted that …
Permanent link to this article: https://betweenthenumbers.net/2016/09/severance-agreements-cannot-interfere-with-whistleblower-protections/
Aug 31
The Securities and Exchange Commission (“SEC”) has awarded $22.4 million to a former Monsanto financial executive, the second-largest whistleblower bounty ever provided. This amount represents the whistleblower’s share of the $80 million penalty paid. The anonymous whistleblower was a former Monsanto financial executive who reported violations of Generally Accepted Accounting Principles (“GAAP”) and misstatements of corporate earnings. …
Permanent link to this article: https://betweenthenumbers.net/2016/08/monsanto-whistleblower-obtains-22-4-million-sec-award/
Jul 23
The Securities & Exchange Commission (“SEC”) has announced an approximately $3 million whistleblower award to an unnamed company insider who provided information to the SEC regarding a complex fraud that would otherwise been difficult to uncover. Whistleblowers who provide the SEC such information are eligible for awards of 10 to 30 percent of the money …
Permanent link to this article: https://betweenthenumbers.net/2015/07/another-whistleblower-gets-multi-millions/
Jul 22
The US Court of Appeals for the Ninth Circuit has opened the door significantly wider for those who wish to pursue qui tam False Claims Act suits by reversing a dismissal of two such matters. Ruling en banc in United States ex rel. Hartpence v. Kinetic Concepts, Inc., the Ninth Circuit has removed a prior …
Permanent link to this article: https://betweenthenumbers.net/2015/07/ninth-circuit-invites-more-qui-tam-cases/
May 04
The U.S. Securities and Exchange Commission (“SEC”) recently announced an award of $1.4 – $1.6 million provided to a compliance officer of a large company. Neither the company’s nor the officer’s name was made public due to confidentiality laws, but the information was reported to having pertained to significant financial harm to the company and/or …
Permanent link to this article: https://betweenthenumbers.net/2015/05/compliance-officer-gets-whistleblower-award/
Apr 15
A recent enforcement action by the Securities and Exchange Commission (“SEC”) is the first of its kind, concerning improperly restrictive language contained in a company’s confidentiality agreements that could potentially impede whistleblower rules and protections. The SEC charged KBR Inc. with violating Rule 21F-17 under the Dodd-Frank Act by requiring witnesses in internal investigations to …
Permanent link to this article: https://betweenthenumbers.net/2015/04/sec-takes-action-on-overly-restrictive-confidentiality-agreements-affecting-whistleblowers/
Mar 17
The US Court of Appeals for the Second District has held that the Securities and Exchange Commission (“SEC”) was within its rights to deny a whistleblower award to Larry Stryker under Section 21F of the Dodd-Frank Act (“Dodd-Frank”), 15 U.S.C. § 78u-6. From 2004-2009, Mr. Stryker submitted information to the SEC regarding alleged wrongdoing by Advanced …
Permanent link to this article: https://betweenthenumbers.net/2015/03/good-deed-performed-too-early-for-sox-award/
