Recovery.gov whistleblower poster misses key details

Posted on January 1, 2010 by Richard Renner

The federal government has released a new poster that employers have to post to their employees if they are receiving stimulus money. The new poster, however, is missing a few key details whistleblowers should know. For example, if a whistleblower wants to know where to file a complaint, the government's poster will only point to the generic www.recovery.com website. The poster does not tell employees that formal written complaints need to be filed with the Inspector General for the federal department that funded the employer. It does not tell whistleblowers that if they wait 210 days for the IG's final determination, they can take their case to federal court and ask for a jury trial. See Section 1553(c)(3) of the ARRA Act (p. 186 of 407). It neglects to inform them that the Act invalidates binding arbitration agreements, and they can sue even if their employer requires arbitration. Section 1553(d) (p. 187).

 

The poster also does not address two other issues that can be very important to whistleblowers, but are admittedly difficult to explain in a workplace poster. First, all legal claims have time limits. The ARRA Act does not specify a time limit for whistleblowers to file complaints. In similar situations, the Supreme Court has held that claims can be dismissed if they are not filed within the time provided by local state law for filing lawsuits.  This time limit can be as short as one year in some states (Kentucky, Louisiana and Tennessee), or as long as six years (North Dakota and Maine). Many states have a two year time limit. If an employee has to wait 210 days for the IG to finish before going to federal court, that might not leave much time for going to court to be sure that a case will be timely. Hopefully, courts will find that the time limit applies to the initial complaint to the Inspector General, and not to the time to file in federal court, but this is a new law and it is too soon to have court decisions on the time limit.

Another issue whistleblowers should consider is who do you call?  Since many stimulus abuse issues will involve frauds against the federal and state governments, the whistleblower may have a right to pursue a qui tam case under the False Claims Act (FCA) and recover a share of the government's recovery. To do this, it would be best to go to an attorney with FCA experience, and training from Taxpayers Against Fraud (TAF).  The FCA qui tam process is unusual, and few attorneys can properly advise whistleblowers about how to establish their status as the "original source" and avoid a "public disclosure" that could bar their claim.  While a hotline report may be one way to become an original source, and anonymous report could make it hard to show that you were that source.  Also, some lawyers may prefer to make a written submission by certified mail rather than trust that a web interface submission or hotline call will be properly documented. Only an experienced lawyer can evaluate all the circumstances to assess what steps would be best in any particular situation.  No government poster will tell you that.
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Senator Grassley Expresses Support For Stronger Anti-Fraud Legislation

Posted on April 22, 2009 by Lindsey Williams

On Monday, Senator Grassley (R-IA) expressed his support for the Fraud Enforcement and Recovery Act of 2009 (S. 386) saying “we simply cannot allow unscrupulous individuals to defraud the government and rip off taxpayers.” The bill provides new tools for the federal government to fight fraud and makes much needed amendments to the Federal False Claims Act.

Under the False Claims Act, whistleblowers bring lawsuits against companies who defraud the federal government. As a reward for their courageous actions, whistleblower receive a portion of the amount the federal government recovers.  As Senator Grassley correctly pointed out in his floor statement,  “we would not have the case or the money returned if it wasn’t for the information of the whistleblower.”  This law has been used to recover more than $22 billion since 1986 and has deterred an incalculable amount of fraud.  

The amendments to the False Claims Act correct loopholes created by recent court decisions, including the Allison Engine case, which allow companies to avoid liability for fraud.  These amendments are absolutely necessary to protect taxpayer dollars – especially in light of the billions of dollars spent in the economic stimulus and TARP legislation.  However, Senator Grassley reminds us “you’re going to find those same special interests that have been around for the last 20 years, trying to gut the legislation. Why? Because it’s one of the most effective tools against fraud.”  We will be following this legislation and will keep you updated on its progress.  

In addition to the amendments to the False Claims Act, the bill authorizes funding for law enforcement and prosecutors, makes changes to federal criminal laws, redefines “financial institution” to include mortgage lending businesses, and adds commodities futures to the securities fraud statute.  The bill also makes it illegal to make false statements on mortgage applications and appraisals and ensures that economic relief funds and TARP funds are included in criminal law prohibiting fraud against the government.
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McCaskill Amendment pushes employers to action

Posted on March 5, 2009 by Richard Renner

How do you know when a whistleblower remedy is effective?  When it drives employers to avoid violations, and establish internal protections for whistleblowers, that would be a good clue.  That is what has happened with Sen. Claire McCaskill's amendment to the American Recovery and Reinvestment Act (ARRA).  The McCaskill Amendment provides whistleblowers with a right to jury trials, compensatory damages, and investigations by Inspectors General.

The management-side law firm, Epstein Becker & Green, issued a "Client Advisory" last week to warn employers about their enhanced liability to whistleblowers under the McCaskill Amendment.  Here is what they are telling corporations who receive government contracts under the stimulus package:

Employers receiving covered funds should take proactive steps now to prevent whistleblower claims under ARRA. As part of a comprehensive compliance program, it may be worthwhile to assure appropriate procedures are in place to prevent and detect mismanagement, fraud, waste, situations creating public danger, abuse or unlawful activity concerning covered funds. Broadening existing hotline or other reporting channels and complaint procedures to cover matters under ARRA may be in order.†ARRA also may occasion review and updating of policies and related orientation, training and monitoring programs, with specific regard to employee whistleblower issues that accompany the receipt of covered funds.

 

This is precisely the impact we hope for from enacting strong whistleblower provisions.  There were no such warnings issued after Congress passed billions of dollars in TARP spending.  Only when employers know that their employees are being encouraged to detect and report fraud – and when those employees have effective legal protections and rewards – will employers start the reforms necessary to change their culture. That will save the taxpayers billions of dollars.  

Taxpayers will save even more money if Congress acts promptly to:
1. Make the current ARRA protections permanent and apply them to all taxpayer spending;
2. Extend the whistleblower remedies to all employees – including federal employees; and
3. Fix procedural defects in the current False Claims Act so that all employees are strongly encouraged to expose waste, fraud and corruption in the spending of taxpayer dollars.

Disclosures by employee-insiders (namely, whistleblowers) are the single most important factor in detecting fraud. Stephen M. Kohn, President of the National Whistleblowers Center issued the following statement: “The stimulus whistleblower provision has already begun to have an effect on the internal corporate culture which may significantly reduce fraud and create an environment where employees are encouraged to tell the truth.”
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A Letter From Bunny Greenhouse

Posted on February 17, 2009 by Marshall Chriswell

Back in 2003, Bunny Greenhouse blew the whistle on no bid contracts to Halliburton that were doled out by the Bush Administration in the run-up to the Iraq War. Since then she has suffered her share of hardships, having been harassed and demoted from her position of Chief Contracting Officer for the US Army Corps of Engineers. Ms. Greenhouse realizes though, that the only way for federal employee whistleblowers to have a chance when they blow the whistle on corruption is to have a strong whistleblower law in place --- a law just like the one that Congress cut out of the stimulus bill last week.


Bunny has issued the following letter, which both supports the newly enacted whistleblower protections for state and local government employees, as well as government contractors and grant recipients, but also expresses her deep disappointment at Congress' failure to enact comprehensive federal employee whistleblower protections. She also urges all whistleblower supporters to continue to contact their Congressional Representatives on this issue.

Please Read Her Letter Here!!! 


Show Your Support For Bunny Greenhouse and federal government whistleblowers by visiting this facebook page and making a contribution to our cause

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Congress Protects Some Whistleblowers, Leaves Others Out

Posted on February 13, 2009 by Marshall Chriswell

On Wednesday, behind closed doors on Capitol Hill, House and Senate leaders hammered out a deal to pass the economic stimulus bill. Both the original House and Senate versions of this bill included protections for employee whistleblowers. By Wednesday evening, news sources such as Talking Points Memo were reporting that the whistleblower provisions in the bill had been cut.
 

Well, we got our hands on the final text of the bill, and it turns out that whistleblower protections for state, local, and government contractor employees have made the final bill! Unfortunately, the proposed protections for federal employees have been eliminated completely.


This is a partial victory, but a victory nonetheless. Now we must continue to fight for the rights of federal employees. Stephen and Michael Kohn, the President and General Counsel of the National Whistleblowers Center, released the following press statement this morning: 

 

"Private contractors and state and local government employees are covered. They have a right to file a claim and present their case to an independent court and jury. It is now up to Congress to finish the job, and ensure that federal employees have the same rights. It makes no sense to protect some workers who have responsiblity over the stimulus, but to deny protections to the federal regulators who will have the primary duty to police the spending and ensure that there is no political favoritism in the allocation of billions of dollars in taxpayer monies," said Stephen Kohn, the President of the National Whistleblower Center.

"Congress has started to listen," said Michael Kohn, General Counsel of the National Whistleblower Center and attorney for Bunny Greenhouse. "We need to redouble our efforts and obtain universal whistleblower protection coverage for all American workers, including federal government employees," Michael Kohn added. Earlier this week Greenhouse had asked that both the McCakill Amendment and the Platts-Van Hollen Amemdnets be enacted into law. The Senate approved the McCaskill amendents, but cut out the protections for federal employees.


"Senator Clare McCaskill did an incredible job getting these changes into the stimulus. It was a tough and fast paced environment and she was able to ensure strong oversight provisions for some of the workers involved in spending taxpayer monies. She worked in an open an bi-partisan manner and obtained the support from other key Senators, including Independent Senator Liberman and Republican Senator Collins. We hope that the reforms included in the stimulus package will be made permament, will apply to the use of all taxpayer monies and will cover federal workers."

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Don't Cut Whistleblowers Out of the Stimulus

Posted on February 11, 2009 by Marshall Chriswell

Members of the House and Senate have been holed up on Capitol Hill all day negotiating the terms of the President's economic stimulus package. Earlier today, we learned that the whistleblower protection provisions in the bill were in danger. While the MSM has been reporting for some time that a deal has been struck, we still don't know the fate of the whistleblower provisions. This legislation is would extend protections to millions of Americans, and should not be cut from the bill. We are still urging supporters to email your Senators!

The National Whistleblowers Center issued the following press release this afternoon.

 

Key Whistleblower Oversight Provisions Should Not Be Cut From The Final Stimulus Bill

Washington, D.C. February 11, 2009. Key whistleblower oversight and accountability provisions should not be removed from the stimulus legislation. The Platts/Van Hollen amendment to the House version of the stimulus bill would extend meaningful whistleblower protections to all federal employees and it should be included in the stimulus bill.

Government and private industry have acknowledged that whistleblowers are the best way to detect waste, fraud and abuse.

“It would be a shame if Congress passed a massive stimulus spending bill without meaningful protections for all employees who are responsible for protecting taxpayer money, ” said Stephen M. Kohn, President National Whistleblowers Center.

“Congress must meet the public’s demand for oversight and accountability,” added Kohn. “Congress must immediately pass whistleblowers protections so that employees are not afraid to report waste, fraud and abuse.”

 

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Stimulus Debate Today! Email Your Senators!

Posted on February 11, 2009 by Marshall Chriswell

The U.S. Senate is debating the financial stimulus package, and the whistleblower protection provision is in danger! We have worked too hard to suffer another seback.

 

TAKE ACTION! Write your Senators today.

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Senate Stimulus Vote Approaching Fast! Contact Congress Now!

Posted on February 9, 2009 by Sam Dratch

The Senate is preparing to vote on the stimulus package, and we must seize this historic opportunity to obtain whistleblower protection for all federal employees. We’re in the final stages of the fight and taxpayers who demand oversight and accountability are making their voices heard, but we need your help. Now Halliburton whistleblower, Bunny Greenhouse is calling on all Americans to contact Congress and tell your Senators and Representatives to keep whistleblower protection in the final version of the stimulus package.

Bunny’s urgent letter capped  off a week of increasing public support for whistleblower protection.  Yesterday, the Washington Post published a letter to the editor emphasizing that whistleblower protections are essential for oversight and accountability. Earlier this week, the Pennsylvania Patriot News endorsed the whistleblower protection amendment of the stimulus package as a necessity to allow civil servants to report fraud.

 

 

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Federal Law Enforcement Backs Whistleblower Protection

Posted on February 6, 2009 by Marshall Chriswell

I am happy to say that we have received another significant endorsement for federal employee whistleblower protections. The Federal Law Enforcement Officers Association has issued a statement in support of the Whistleblower provisions passed by the House of Representatives in the Economic Stimulus package last week, and is urging the Senate to pass the bill with the whistleblower provisions intact. Further, FLEOA is calling on President Obama to enact an executive order which would restore the careers of Law Enforcement Officers (including counterterrorism agents) who have had their careers destroyed after blowing the whistle.


Jon Adler, the National President of FLEOA had this to say about the retroactive protections:


"After abiding by their oath to uphold the laws of the Constitution, this small select group of federal law enforcement and counter-terrorism agents suffered unwarranted retaliation due to the ineffective and outdated federal Whistleblower Protection Act currently in effect."

 

 

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Other DC Newspapers Get It....

Posted on February 5, 2009 by Marshall Chriswell

In the battle for the support of DC's newspapers, whistleblowers are winning 2-1. As we reported yesterday, the Washington Post has come out against the comprehensive whistleblower protection provisions included in the economic stimulus package passed by the House of Representatives last week. The Post went so far as to say that the provisions should be pulled from the bill, and that protecting national security whistleblowers is "just plain wrong." (click here for a rebuttal to the Post editorial) Although this is disappointing, there are at least a couple of newspapers around town who got it right.


Today, the Washington Times endorsed the whistleblower provisions, highlighting a number of important and heroic whistleblowers in the article. Check it out here.  Earlier this week, the Washington Independent also carried a lengthy article highlighting the proposed whistleblower laws, and even pointing out that there should probably be MORE protections included in the bill. 

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