In Other Whistleblower News...3 More Important Stories

If you haven't noticed, we have been really focused on passing stronger whistleblower laws in the economic stimulus bill. We had a major success when the bill passed the House of Representatives, and now we are moving on to the Senate. Although this legislation is the major whistleblower story this week, there are a few other stories on our radar, and I just wanted to share them with our readers.


First, and easily the second biggest whistleblower-related news story of the week, is the testimony of Harry Markopoulos, a financial analyst who tried to blow the whistle on Bernie Madoff's $50 billion fraudulent Ponzi scheme for over a decade. Markopoulos offered stunning testimony before the House Financial Services Committee this week, condemning the SEC for ignoring his reports and mismanaging the investigation. Markopoulos told lawmakers that he "gave them [the SEC] a road map and a flashlight to find the fraud, and they didn't go where I told them to go.”

Here are some articles detailing his testimony:

CBS NEWS: "Madoff Whistleblower is Finally Heard"
CNN MONEY: "Madoff Whistleblower Blasts SEC"
TIME: "A Madoff Whistleblower Tells His Story"


Now for some good news. Along with the legislative progress being made at the national level, two states are considering statutes to create and/or strengthen whistleblower protections.  This Minnesota Star-Tribune opinion piece explains the how Minnesota (and all states) can benefit from a False Claims Act. Minnesota's legislature is considering enacting an FCA modeled on the federal law.


North Dakota is also considering strengthening its whistleblower laws after recent retaliation against state employees revealed that the laws are inadequate.


Our last bit of news comes from Texas, where Marilou Morrison, a former employee of the Texas Commission on Human Rights was awarded a jury verdict of nearly $1 million after suffering retaliation for blowing the whistle on racial discrimination in the agency's hiring practices. The kicker is this: the Texas Commission on Human Rights is the agency that is supposed to enforce laws against discrimination. Ms. Morrison's attorney Gary Bledsoe summed it up nicely by saying, "The agency that is supposed to enforce civil rights is being hit with basically a million dollar judgment for violating the very statutes they are required to enforce."


Ok, now that you are up to date on whistleblower news from around the country, keep checking back for more information on the federal employee whistleblower legislation!

Encouraging Whistleblowers

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.

Audit Firm Finds White-Collar Fraud and Whistleblower Complaints Are on the Rise

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