Fines and Penalties for Whistleblower Retaliation Fraud

Whistleblower retaliation fraud is a serious matter that involves punitive measures for both the act of fraud and the subsequent retaliation against the whistleblower. At Spodek Law Group, we understand the complexities and nuances of these cases, and we are here to provide you with the information you need to navigate these challenging waters.

Understanding Whistleblower Retaliation Fraud

Whistleblower retaliation occurs when an employer takes adverse action against an employee who has reported fraudulent activities or violations of law. The Federal False Claims Act (FCA) is one of the primary statutes that protect whistleblowers and penalize those who retaliate against them. Under the FCA, whistleblowers who expose fraud against the government are entitled to significant protections and potential rewards.

Penalties for Whistleblower Retaliation

The penalties for whistleblower retaliation are designed to deter employers from punishing employees who report wrongdoing. These penalties can be severe and include both civil and criminal consequences.

Civil Penalties

1. Treble Damages: Employers found guilty of retaliation under the FCA may be required to pay three times the amount of damages that the government sustained due to the fraud, known as treble damages.
2. Civil Penalties: In addition to treble damages, violators may face civil penalties of up to $22,000 for each false claim submitted to the government.
3. Back Pay and Reinstatement: Whistleblowers who suffer retaliation are entitled to be reinstated to their position without loss of seniority. They may also receive two times the amount of back pay plus interest, along with compensation for any special damages, including litigation costs and attorney fees.

Criminal Penalties

While the FCA itself is a civil statute, the Department of Justice (DOJ) often reviews FCA cases to determine if criminal charges are warranted. If criminal fraud is found, individuals involved can face additional penalties, including imprisonment. The DOJ's increased focus on financial crimes means that criminal prosecutions for whistleblower retaliation fraud are becoming more common.

Notable Legal Citations and Case Law

Several key legal citations and cases illustrate the application of these penalties:

• False Claims Act (31 U.S.C. §§ 3729-3733): This act outlines the provisions for civil penalties and treble damages for fraud against the government.
• Sarbanes-Oxley Act (SOX): Section 806 of SOX provides protections for employees who report securities fraud and face retaliation. Courts have held that SOX claims can be considered securities claims for insurance purposes, potentially expanding the scope of coverage for whistleblower retaliation claims.
• Garcia-Brower v. Kolla's Inc.: This California Supreme Court case held that an employee's whistleblower complaint is protected even if the employer was already aware of the violation, broadening the scope of protected disclosures under state law.

Whistleblower Anti-Retaliation Laws

The FCA's anti-retaliation provision specifically protects whistleblowers from being discharged, demoted, suspended, threatened, harassed, or otherwise discriminated against for reporting fraud. To make a successful retaliation claim, the whistleblower must demonstrate that they engaged in protected activity and faced discrimination because of that activity.

Compensation for Whistleblowers

Whistleblowers who successfully bring a retaliation claim may receive significant compensation. This includes:

• Reinstatement: Returning to their previous job position with full seniority.
• Back Pay: Double the amount of lost wages plus interest.
• Special Damages: Compensation for any additional losses suffered due to retaliation, including legal fees and emotional distress.

Conclusion

Whistleblower retaliation fraud carries significant fines and penalties designed to protect those who expose wrongdoing and to deter employers from punitive actions. At Spodek Law Group, we are dedicated to defending the rights of whistleblowers and ensuring that justice is served. If you believe you have been retaliated against for reporting fraud, contact us at 212-300-5196 for a consultation. Our experienced attorneys are here to help you navigate the complexities of whistleblower law and secure the compensation you deserve.Call to Action: Have you faced retaliation for blowing the whistle on fraud? Contact Spodek Law Group today at 212-300-5196 for a free consultation. Let us help you fight for your rights and secure the justice you deserve.