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When it comes to complaints about government misdeeds and frauds, the CVC does not take anonymous complaints although it attempts to have an interest in maintaining confidentiality of the complainant.
SEBI will take anonymous complaints according to this clarification and according to the SEBI (Prohibition of Insider Trading) Regulations, it will take complaints that don’t reveal the identity of the informer if they are filed through a legal representative
SEC will take anonymous if represented through counsel therefore information of violations of SEC regulations and violation of Foreign Corrupt Practices Act Whistleblower mechanisms can be accessed without immediately revealing your identity. Additionally, even at the time of announcing settlements or awards, the SEC takes measures to maintain the confidentiality of whistleblowers.
Initially a Qui Tam proceeding under the False Claim Act is filed under seal and only the Court and those investigating the complaint in the Government are aware of the whistleblower’s identity. It remains under seal for 60 days or until further time sought by the U.S. Government to investigate the complaint – and usually in this period a lot of settlements are also entered. In cases where a successful settlement is entered into before unsealing of a complaint, the whistleblower’s identity remains confidential. Cases often get settled and identities can remain anonymous. However, if there is no settlement and the case proceeds in court, the complaint is unsealed and the whistleblower’s identity is no longer confidential. A Qui Tam proceeding under the False Claim Act can be filed without revealing the identity of the relator/whistleblower by convincing the court that there is a reasonable fear of severe harm and file as jane or john do OR filing through a legal entity like a partnership or an LLC. In both cases if the Court disagrees or the Corporation insists in discovery the identity of the whistleblower may be revealed.
Under the SEC Whistleblower program which includes whistleblowing about the Foreign Corrupt Practices Act, if the TCR provided by a whistleblower leads to civil recoveries totaling more than $1 million, the whistleblower is eligible for an award between 10%-30% of the penalties.
Under the FCA, the Whistleblower may be able to reap an award between 15%-30% of the penalties imposed as a result of the information provided the relator/whistleblower.
Under the Anti-Money Laundering and Sanctions Whistleblower Program an enforcement action that results in more than $1 million penalties, a whistleblower could be looking at an award between 10%-30% of the recoveries.
The Dodd Frank Act prohibits the identification of the whistleblower and any SEC employee who reveals information will be fined for revealing. So far, no such case has occurred, as far as we are aware.
There is no explicit rule against public disclosure of a whistleblowing complaint under most laws. Some laws like the FCA have complaints filed under court seal which would prevent a leak of a complaint. However, it would be important to consult a lawyer before choosing to leak a complaint.
Most lawyers in the U.S. are permitted by rules governing professional conduct to charge contingency fee in civil cases. That means that lawyers in the U.S. can enter into representation agreements that account for their whole (or part) fees to be paid only in the event that the client receives a whistleblower reward.
Whistleblowers can get an award for providing information that significantly contributes to an ongoing investigation’s success.
In a general scenario, Employee whistleblowers may proceed directly to the SEC Whistleblower Program. These write–ups expands on the SEC’s new liberal view on compliance and audit officials accessing the whistleblower program. It would depend on the facts and would be useful to consult an attorney to understand whether a specific type of compliance officer can access the whistleblower program.
Discussions that involve evaluation of a case before the lawyer and potential whistleblower/ potential client enter into a representation agreement is a conversation that is privileged and confidential. Even though no lawyer-client relationship has been created at the point of a conversation that evaluates a whistleblower’s complaint, it is still a privileged conversation. That means that even if a potential whistleblower decides not to hire a lawyer or file a claim after a conversation to evaluate their legal claims, the lawyer cannot share information or otherwise use it for any purpose without the permission of the potential whistleblower/potential clients.
Given the sensitivity of information that a whistleblower may have, it is cautious to first generate contact with a lawyer and then discuss a method of a secure line of communication to discuss potential claims.
Yes.
Typically, experienced knowledgeable and prudent whistleblower attorneys can evaluate the type of information, and available evidence to advise a potential whistleblower about whether it would be worth proceeding with a complaint or tip as well as the likelihood of investigation by the Government authorities.
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