Whistleblower Protection Blog : Whistleblower Lawyer & Attorney : National Whistleblower Legal Defense and Education Fund : Whistleblower Protection, Fraud Claims : Washington DC

Speaker of House Nancy Pelosi issued a press release expressing her support for the whistleblower amendment to the stimulus bill.  Speaker Pelosi stated that "It is inconceivable that the people’s business had been conducted for so long without ‘whistleblower’ protections to encourage every public employee to do the right thing."

The Speaker's press release is encouraging as we gear up for a fight in the Senate.  Please contact your Senators IMMEDIATELY and urge them to include the same federal whistleblower protections in their version of the bill that the House passed.  

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Just minutes ago the House of Representatives approved the Platts-Van Hollen amendment to the stimulus package granting whistleblower protection to federal employees and contractors.  Thanks to your action, House members recognized the critical role whistleblowers play in oversight and accountability and the House has approved excellent whistleblower provisions contained in the former H.R. 985.  The amendment was adopted on a voice vote with no audible opposition.

Federal employee whistleblower protections are part of the entire Stimulus Package (H.R. 1), but our work is not done.  Now the battleground shifts to the Senate.

Take Action!  Contact your Senator and tell them to protect federal employees!

This is one of the most important legislative battles ever for whistleblowers.  

Together, good government allies have been fighting for nine years to achieve meaningful whistleblower protection for ALL federal employees.  With the overwhelming support of the House and over 260 public interest organizations on record supporting these protections, this is our best chance and we have the strength to overcome the opposition.  We must seize the moment!

Act Now!  Protect taxpayer dollars!

If you have emailed your Senator now is the time to follow up.   Tell your friends, family, coworkers, and everyone else you know to contact their Senators.   Then call your Senators’ offices and let them know that whistleblower protections are essential for oversight and accountability of federal spending.   Point out how national security workers need whistleblower protections, including jury trials, as much as any other federal employee.  Tell your Senators that the bill will protect both national security and whistleblower rights by requiring an award of whistleblower remedies whenever the government prohibits a whistleblower from using the evidenced needed to prove a case.

Now is the time to do everything you can.  Please consider a personal visit to your Senators’ offices today.   This could be our only opportunity to obtain real protection for federal employees who risk their careers to report waste, fraud, and abuse of your taxpayer dollars.

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At 3:00 PM TODAY there will be a Rules Committee meeting to vote on amendments to the stimulus legislation. One of the amendments under consideration would include whistleblower protection in the bill This is the optimal time for Congress to pass meaningful whistleblower protection! We are urging everyone to Take Action and tell your Congressman to support amending the bill to include whistleblower provisions.

Click here to read more on the NWC website

Click here to take action on this issue!

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Today the U.S. Supreme Court makes clear that workers are protected from retaliation when they provide information about unlawful discrimination, even when they did not initiate any legal action, but merely answered questions during the employer's investigation. The decision is called, Crawford v. Metropolitan Government of Nashville and Davidson County, Tennessee, Case No. 06-1595.

Read the Court's full decision here.

Follow this link to NWC's press release about the Crawford case, including links to the parties' briefs.

This link goes to the NELA amicus brief in support of Crawford.

Here is the transcript of the Supreme Court's oral argument.

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Today's Christian Science Monitor has an excellent article on what companies need to do to encourage whistleblower reports. Employers large and small should be thinking about this especially because fraud reports are rising as the economy falters.

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The U.S. Supreme Court has granted a writ of certiorari in the case of Eisenstein v. New York. Eisenstein is a qui tam action brought by municipal employees in New York City. The complaint makes a rather unique argument, alleging that NYC is depriving the federal government of tax revenue by requiring city employees who are non-city residents to pay "a fee equivalent to the municipal income taxes paid by resident city employees." The non-resident employees then are permitted to take a federal tax deduction in the amount of the fee, which lowers their amount of taxable income, therefore lowering the amount of tax revenue going to the IRS.

The Supreme Court, however, is not looking at the substantive facts of the case. The Justices will be ruling only on the following issue: Whether a qui tam plaintiff has 30 or 60 days to file an appeal in a False Claims Act case in which the government has not intervened.

The Federal Rules of Civil Procedure Rule 4(a)(1)(A) requires all civil appeals to be filed in 30 days unless the United States is a party to the lawsuit, in which case Rule 4(a)(1)(B) extends the appeals deadline to 60 days. The plaintiffs in the Eisenstein case reason that, since the US government always stands to benefit from a qui tam action, then they are a "party" to the case even if they have not chosen to enter into the suit. However, the Second Circuit Court of Appeals threw out the Eisenstein case, holding that: 

"...where the United States has declined to intervene in a False Claims action, the United States is not a party to the action...therefore a notice of appeal must be filed in 30 days."

This is an interesting case. We will keep you updated on it's progress and outcome. Briefs are due to be filed by the end of March. See the links below for more information.

• Second Circuit Opinion
• Petition for Certiorari
• Opposition Brief
  
• Petitioner's Reply Brief

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A leading global risk-management company, Kroll, Inc., has issued a new report finding that one of the unfortunate byproducts of our current global financial crisis will be an uptick in white collar crimes, particularly corporate fraud. As the Kroll report describes the situation, companies experiencing lean profits will have increased incentives to engage in fraudulent behaviour. More companies 'cooking the books' also means something else...more honest employee whistleblowers stepping forward to put a stop to this unethical behavior.

These often unsuspecting whistleblowers will no doubt experience harsh retaliation from employers, as the company executives scramble to save their hides. Whistleblowers will be harrassed in any number of ways; they will be demoted, fired, threatened, persecuted, and prosecuted. And unfortunately there aren't many good laws out there to protect them.  Unless our leaders in Congress act to pass whistleblower protection laws immediately, many of these heroes will be left out in the cold.....

Click here to sign a petition telling Congress to pass whistleblower laws.

Click here to view the 16-page Kroll fraud report.

DIGG this story here

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The dawning of a new administration is upon us, and with it comes an opportunity for whistleblower rights supporters to make their voices heard, and to achieve real changes to our ineffective whistleblower laws.

Over the past couple of years, Congress has inched towards reforming whistleblower laws for government and corporate employees, but the constant threat of veto from the Bush Administration tempered their political willpower. Now, with Obama (who has consistently supported whistleblower protection legislation) moving into the White House, as well as major concerns with transparency in doling out government bailout money AND the $50 billion Madoff scandal, we have a big chance to get the attention of Congress and new administration officials. But, nothing will happen unless we can show that the American people support protecting government and corporate whistleblowers who come forward to report illegal activity at work. We need you to get involved!!!

Here are 3 ways you can help fight for whistleblowers this inaugural season: 

1. Sign the National Whistleblowers Center petition! The NWC is sponsoring a petition urging members of Congress to enact a national whistleblower protection law. Please join the thousands of whistleblower supporters have signed on!

2. Volunteer at Inaugural Events This Weekend! The NWC is looking for volunteers to collect signatures for our petition in support of strong whistleblower legislation (see #1 above). We are planning to petition at Inaugural events on Sunday, Monday, and Tuesday. For more information, call the NWC at 202-342-1903 or email Advocacy Director Lindsey Williams at lmw@whistleblowers.org

3. Vote for Whistleblower Protection! The Obama Transition Team website is requesting that Americans vote on the issues that are most important to them. Whistleblower Protection has been steadily moving up the ranks - let's get it to the top of the list!
 

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On Thursday, the Colorado Department of Healthcare Policy and Financing (HCPF) cancelled a policy prohibiting employees from making secret recordings in the office.   Governor Bill Ritter, who initially endorsed the new policy, reversed his earlier decision and advised the department to cancel the policy.  The Governor should be commended for this decision.  By following Federal case law, which has supported the use of secret recordings in whistleblower cases, Governor Ritter re-affirmed the rights of all American workers.   

HCPF executives implemented the anti-taping policy in response to an ongoing whistleblower case.  Althought the state Department of Labor and Employment ruled the whistleblower was "wrongfully terminated", Governor Ritter has decided to support HCPF instead of the whistleblower.  While we applaud the Governor's decision to uphold the law and oppose the anti-taping policy, now he must make another important decision.  The Governor should  support oversight and accountability by disciplining HCPF's directors and defending a Colorado citizen who had the courage to report fraud. 

 For more on the Governor's decision to oppose the anti-taping policy please see the Denver Post editorial here.

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Tonight I celebrated with members of Local 12 of the American Federation of Government Employees (AFGE).  These employees of the U.S. Department of Labor held a party to welcome the end of the current administration, led in their department by Secretary of Labor Elaine Chao.  So here is their cake, saying Ciao to Chao.  They served this cake on the very day that the Senate heard testimony from President-elect Barack Obama's nominee, Rep. Hilda Solis.

Ironically, employees of the Department of Labor know all too well the stuggles working Americans face all over the country.  Perhaps that is why they were eager to sign the National Whistleblower Center's petition to Support Oversight and Accountability, Enact Whistleblower Legislation Now.  Over two dozen signed up on the spot.

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 On January 4th, the Denver Post published an editorial on Colorado Governor Bill Ritter's actions in the case of a Colorado Department of Healthcare Policy and Finance (HCPF) whistleblower.  HCPF administers taxpayer funds to recipients of Medicare and low-income children.  In December, the State Personnel Board found that HCPF accountant Annmarie Maynard was “wrongly fired” for blowing the whistle on the department’s attempt to hide $8 million it over-collected from the government.  Governor Ritter is appealing the personnel board’s ruling that he should consider disciplining the executive and deputy directors of HCPF for violating the Whistleblower Act.  The Governor is also appealing a state Department of Labor and Employment ruling that Maynard was wrongly fired.

The Governor’s attempt to defend the department instead of protecting the rights of state workers and taxpayers is extremely troubling.  However, HCPF ‘s new policy could set a dangerous precedent for the rights of all American workers.  This policy, implemented by executive director Julie Henner, prevents HCPF employees from making secret recordings in the office.  In response to the policy, NWC president Stephen Kohn stated, “Many red flags go up here, any rule that restricts [taping] does great harm.”  While Governor Ritter’s office argues the policy protects client confidentiality, the article correctly notes that only the posting of the tape outside the office, not simply making the recording, would jeopardize confidentiality.  The case is currently being appealed. The Governor and his appointees have failed to protect Colorado’s employees.  It’s time for Colorado’s judges to uphold the law and defend whistleblower protections.

To read the article please click here.

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"Whistle-blower legislation brings in a lot of money," proclaims the headline in Business Hungary magazine. The article in November's issue reports on a trip to Hungary by Stephen M. Kohn, President of the National Whistlelbower Center. 

Stephen Kohn traveled to Hungary last Fall to urge Hungarian officials to adopt a whistleblower law similar to America's False Claims Act (FCA).  Under the FCA, those whistleblowers who are the original source of information leading to the recovery of federal funds fraudulently obtained can recover between 15% and 30%  of those funds. Since a 1987 amendment, FCA claims have helped taxpayers here  reclaim $20 billion. To help us make these recoveries, the whistleblowers faced
discharge, financial ruin or worse. Even whistleblowers who are not the "original source" of information are still protected from retaliation.

More significant than the money recovered, the FCA compels business to stay honest with the government -- cleaning up entire industries.  No wonder, then, that Hungary's Minister of Justice, Tibor Draskovics, announced plans for a similar law in Hungary. A recent Transparency International report also recommended whistleblower protection legislation as a way to deter corruption.

The Hungarian branch of the Chamber of Commerce recognizes how whistleblower remedies, and even cash awards, will encourage reports of wrongdoing and help honest businesses compete. I wonder, though, why honest American businesses are not promoting the FCA here in their homeland. The FCA routs out the the dishonest operators here too, and levels the playing field for honest businesspeople everywhere. It would be logical, then, if these same American businesses would support the False Claims Corrections Act when it is reintroduced in the new Congress.

Click here for an image of this Business Hungary article.

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The U.S. Court of Appeals for the District of Columbia this week affirmed a decision to dismiss a federal whistleblower's case, primarily because the whistleblower suffered no "materially adverse" action. Baloch v. Kempthorne, No. 07-5330 (Dec. 30, 2008).

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