When is a “whistleblower” not a “whistleblower” qualifying for a bounty ordinarily available under government whistleblower programs? A recent court decision in the United States has drawn some lines.
In a decision dated November 15, 2022, the U.S. Second Circuit affirmed [PDF] a decision of the Securities and Exchange Commission (SEC) which found a whistleblower ineligible for an award on the basis that he had been convicted for a criminal offence “related to” the information he provided. In this unique case, the whistleblower was found guilty of an offence related to the international bribery scheme about which he provided information to the SEC. Though this information led to successful enforcement actions, the whistleblower did not receive an award as a result of his own offences.
The Court acknowledged that the whistleblower had provided information to the SEC leading to successful enforcement actions in connection with the bribery scheme. The whistleblower was not a target of the enforcement for which he provided information. However, it was uncontested that the whistleblower had subsequently pleaded guilty to bribery charges involving the same country, industry, and some of the same individuals as the international bribery scheme. The whistleblower applied for a whistleblower award only after a court had accepted the whistleblower’s guilty plea to bribery charges.
Whistleblower programs
Ordinarily, under the SEC program, a whistleblower who provides the SEC with...
Blow the whistle, get paid. A Justice Department bounty program that incentivizes employees to blow the whistle on their employers could lead to more whistleblowing as the Trump administration inte...