Category: Whistleblower Systems

DOJ appoints first ever Whistleblower Ombudsperson

Recently-appointed Department of Justice (DOJ) Inspector General Michael Horowitz appointed a new Whistleblower Ombudsperson within the Office of the Inspector General (OIG). Robert Storch, an experienced federal prosecutor, will fill the newly-created position. The announcement indicated that this is the first such position in the federal government. The OIG announcement of the new position indicates …

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Whistleblower Recovery Is Ordinary Taxable Income

The Ninth Circuit decided a taxation case of first impression involving whether a qui tam or whistleblower recovery provides a taxable capital gain from a sale of property, or ordinary taxable income. The District Court in Los Angeles, and the Ninth Circuit both agreed with the IRS that the higher rate of taxation from ordinary …

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Will the IRS finally get serious about its whistleblower program?

A June 20, 2012 memorandum from Steven Miller, IRS deputy Commissioner for Services and Enforcement, acknowledges that the IS has done a poor job with it whistleblower program, and seeks to establish a new standard of much better responsiveness. This article describes the program that was signed into law at the end of 2006. Miller’s …

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Permanent link to this article: https://betweenthenumbers.net/2012/07/will-the-irs-finally-get-serious-about-its-whistleblower-program/

Grassley again criticizes IRS whistleblower program administration

Senator Chuck Grassley is a member of the Senate Finance Committee. In a May 2012 letter, he prods Treasury Secretary Timothy Geithner and IRS Commissioner Douglas Shulman to do a much better job of timely compensating IRS whistleblowers for their information. See this article for more information about the IRS whistleblower program and the program’s …

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Permanent link to this article: https://betweenthenumbers.net/2012/05/grassley-again-criticizes-irs-whistleblower-program-administration/

GSA Whistleblower Testifies Regarding Government Waste

There has been a great deal of discussion regarding the approximately $800,000 spent on a lavish 2010 Las Vegas conference hosted by the General Services Administration (GSA).  The GSA handles government real estate and other non-military procurement.   Susan Brita, a GSA deputy administrator, was the whistleblower who first raised the issue, which has since …

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Permanent link to this article: https://betweenthenumbers.net/2012/04/gsa-whistleblower-testifies-regarding-government-waste/

IRS ignoring payments required by its whistleblower program

A former bank executive filed suit against the Internal Revenue Service (IRS) for failing to pay him a whistleblower award for information submitted in 2007. As initially reported in the Washington Post, Joseph Insinga … alleged that Rabobank Group, where he worked as an executive for more than a decade, helped seven companies avoid hundreds …

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Permanent link to this article: https://betweenthenumbers.net/2012/03/irs-ignoring-payments-required-by-its-whistleblower-program/

Former CEO recognized for whistleblower action

Michael Woodford has been recognized with the 2012 Cliff Robertson Sentinel Award by the Association of Certified Fraud Examiners (“ACFE”) for the whistleblower actions that allegedly led to his ousting from the company.  As the new CEO of Olympus Corporation, Mr, Woodford exposed alleged fraud at his own company.  The allegations involved improper accounting attributed to …

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First Circuit limits SOX whistleblower protection

In a February 3, 2012 Opinion, the First Circuit Court of Appeals reversed a Massachusetts District Court and held that, while the whistleblower protections of the Sarbanes-Oxley Act apply to employees of “public companies” (i.e., a company with registered securities or one that files reports under Section 15(d) of the Exchange Act), they do not …

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DOL’s ARB limits SOX whistleblower protections To U.S. employees

By a 3-2 vote, the Department of Labor’s Administrative Review Board (ARB) limited the jurisdiction of the Sarbanes-Oxley Act (SOX) whistleblower protection outside the United States. The case is Villanueva v. Core Laboratories, NV, ARB No. 09-108, ALJ No. 2009-SOX-6 (ARB Dec. 22, 2011) (en banc). The ARB received multiple amicus briefs setting out the …

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SEC Whistleblower Program Collects a Surprising Number of Complaints

The Dodd-Frank Wall Street Reform and Consumer Protection Act added requirements for the SEC to maintain a whistleblower reporting capability, and to annually report on the results each fiscal year. Section 922 of Dodd-Frank added Section 21F to the Securities Exchange Act, requiring the SEC to make monetary awards to those who voluntarily provide original …

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Permanent link to this article: https://betweenthenumbers.net/2012/01/sec-whistleblower-program-collects-a-surprising-number-of-complaints/