Category Archives: Qui Tam / False Claim Act

The Whistleblower Laws – What Everyone Needs to Know

June 2nd, 2011

 alt=Are you a corporate or government whistleblower? Are you afraid? Confused?
Relax. Get informed and contact Sarelson Law Firm today.
What is the most important thing to know?

Before you quit your job and before you tell the world, contact a lawyer. Existing employees are in a far superior position than former employees and information already public is not protected. Retain experienced legal counsel to guide you through the process.

Who is your employer?

Various state and federal laws provide for different forms of protection for those engaged in whistleblowing activity. But perhaps the first and most important question is, “who is your employer?” Employees of publicly traded companies and their subsidiaries are protected under the Sarbanes Oxley Act and the Dodd Frank Act.
Other state and federal whistleblower laws are premised on the number of employees a company employs. Some laws require an employer to have 50 employees (the Family and Medical Leave Act), to have 20 employees (the Age Discrimination in Employment Act), or to have 15 employees (sex, race and religious discrimination).
Florida has a private whistleblower act that applies to employers with at least 10 employees and a civil rights act that applies to employers with at least 15 employees.
Other whistleblower statutes are premised on the amount of revenue the employer takes in. The Fair Labor Standards Act applies to employers with at least $500,000 in annual sales (not profit).
The Internal Revenue Service has a whistleblower statute premised upon the amount of money the company is failing to pay the IRS. The IRS wants to see at least $2M in unpaid taxes.
Public employees in Florida have their own specific whistleblower statute.
The first question a great whistleblower lawyer will ask is, “who do you work for?”
What are you blowing the whistle about?
Companies do stupid things and make bad business decisions all the time – that’s just part of business and risk taking. The key is to make sure that you are blowing the whistle about something that is more than just a bad business decision. Is the company violating securities laws? Is the company defrauding its investors and shareholders? Is the company using questionable accounting practices? Are senior officers making false disclosures to auditors and government agencies? If your employer is a government contractor, is the company defrauding the government by overbilling or under-performing? Is your employer violating anti-discrimination and anti-retaliation statutes? Is your employer violating wage laws by forcing employees to work “off the clock” or by not paying overtime? Is your company violating any local, state or federal law or regulation? If the answer is yes or potentially yes to any of these questions, then you have may have whistleblower status.
Who makes the best whistleblowers?
You do — the employee who cares about business ethics, the public servant who cares about government waste.
Anyone can obtain whistleblower status but senior employees generally have more access to more information. Employees in human resources, legal, accounting, bookkeeping, accounts receivable, finance and information technology are more likely to have insider information about corporate or government wrongdoing.
How am I protected?
Whistleblower statutes make it illegal to terminate an employee because the employee engaged in whistleblowing activity. Anti-retaliation provisions are very broad. Despite this, whistleblowers have to be prepared for significant blowback. Just because something is illegal does not mean that it will not happen.
What is the incentive to blow the whistle?
Most whistleblowers are motivated by an innate sense of right and wrong. If you are fired in retaliation, you generally are able to seek back and front pay for the financial loss and additional compensation for pain and suffering. In some circumstances, punitive damages are available.
Some whistleblowers are entitled to additional financial compensation by the government as a “thank you” for blowing the whistle. Three federal laws permit additional financial compensation – the Internal Revenue Service’s bounty program, the Securities and Exchange Commission’s Dodd-Frank bounty program and the False Claims Act’s recovery program.
What should I not do?
The absolute worst thing a potential whistleblower can do is to resign prematurely. Many employees claim that they were forced to quit or they just could not deal with the situation any longer. Generally speaking, an employee who voluntarily resigns cannot bring an employment or whistleblower lawsuit. Early retention of legal counsel is the key.

How do I pay for my attorney?

Sarelson Law Firm, P.A. generally accepts whistleblower cases on a contingency fee. We provide a full range of legal services, including presuit investigation, litigation, cooperation with various government agencies and media outreach.

Posted in Dodd-Frank Bounty, Qui Tam / False Claim Act, Retaliation, Whistleblower Suits | Comments Off

Whistleblower Suit Accuses Rolls-Royce of Quality Control Issues that Resulted in the Death of American Soldiers

December 24th, 2010

You can’t make this stuff up. Thomas McArtor was a quality control manager for Rolls-Royce. According to his lawsuit, he repeatedly complained to Rolls-Royce that the engines it was building for American helicopters failed quality control tests and were substandard. The engines failed in unusually high rates while operating during combat operations, and the result was the loss of several American soldiers. After complaining to management about the defective engines, he was fired.
Let’s assume for a moment that only a small portion of the allegations prove true. If so, then wow. This is devastating for Rolls-Royce. Image Rolls-Royce knowingly delivering defective helicopter engines to the United States Army, with the consequence being the loss of life.
Considering the implications for the company, you can assume that Rolls-Royce will stop at nothing to defend this lawsuit. (As of today the blog does not know who the company hired to defend it). The discovery disputes alone could take years to resolve.
The lawsuit is here:
FTC v. I Works

Posted in Qui Tam / False Claim Act, Whistleblower Suits | Comments Off

Employees with knowledge of overbilling the United States

October 10th, 2010

What do you do when you work for a company that is milking the federal government? Is your company sending out fake invoices to Medicare? Is your company lying about the services rendered? Overbilling? Fake time entries? Are the goods being sold to the government inferior?
Federal and state law protects whistleblowers who report fraud on the government. But the law is very tricky and not every whistleblower will be protected under the law.
Specific industries are particularly prone to government fraud:
Health care providers who bill Medicare.
Pharmaceutical companies who benefit from government reimbursement or off-label marketing.
Defense contractors.
Private security contractors.
Janitorial and building management contractors
Office product suppliers.
Software developers who provide customized software solutions.
Sarelson Law Firm has experience representing whistleblowers and can advise employees and other whistleblowers on how to best proceed. Because the law is tricky and because it is very easy to not comply, the Blog recommends you contact an experienced attorney immediately and confidentially.
Employees may be entitled to recover up to 30% of the value of the money returned to the government as a result of your knowledge and assistance.

Posted in Qui Tam / False Claim Act, Whistleblower Suits | Comments Off