The legislation will strengthen whistleblower protections for federal contractors and grantees beyond existing law. Under current law, it is illegal for contractors, subcontractors, grantees, and personal services contractors to fire, demote, or otherwise retaliate against employees for whistleblowing.

Sen. Peters points out that while current law offers some protections for federal contractor employees, it is weaker than those available to federal and private-sector employees, leaving room for retaliation by federal officials. The bill seeks to strengthen these protections and increase accountability for such actions.

The bill also clarifies that whistleblower protections cannot be waived through non-disclosure agreements (NDAs) or other employment contracts. It also protects employees from retaliation if they refuse to carry out unlawful directives.

Finally, the bill would limit the authority of executive branch officials by making clear that they cannot direct contractors to retaliate against whistleblowers, and would allow agencies to take disciplinary action against officials who engage in such conduct.

“Whistleblowers working for federal contractors and subcontractors shouldn’t face retaliation for sounding the alarm on waste, fraud, and abuse,” said long-time whistleblower advocate Grassley, “I’m glad to see the Senate pass this legislation to strengthen protections for whistleblowers and close the loopholes that have allowed retaliation.”

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Desiree Fixler, a former Deutsche Bank executive, learned that the bank was misleading investors about its use of ESG (environmental, social, and governance) criteria in investment decisions. She reported these concerns to the Wall Street Journal in 2021 and filed a complaint with the SEC two days after the article was published – but not before SEC officials saw the article and called Fixler to request additional information.

After years of investigating with Fixler’s assistance, the SEC fined Deutsche $19 million. Under the Dodd-Frank Act, SEC whistleblowers whose information leads to successful enforcement can qualify for a mandatory award of between 10% and 30% of sanctions collected. But to qualify, a whistleblower must “voluntarily” provide information to the SEC – a requirement the SEC interprets to mean the whistleblower must reach out to the Commission before the Commission reaches out to them, even if the whistleblower provided their information to the media first.

Also on May 4, Fixler filed an appeal of her award denial in the U.S. Court of Appeals for the D.C. Circuit. Fixler’s attorney, Stephen Kohn (a leading whistleblower advocate and major participant in the Dodd-Frank rulemaking process), said the SEC’s interpretation of “voluntary” contradicts the plain meaning of the Dodd-Frank Act and fails to acknowledge whistleblowers’ typical behavior and motivations. SEC investigations often remain confidential for years, he noted, so whistleblowers often choose to go to the media to inform the public about wrongdoing and create public pressure against bad actors – a finding substantiated by research on whistleblower activity.

“Whistleblowers go to the press,” said Kohn in a comment. “Media disclosures get the government to act. Congress authorized whistleblowers to submit original information through the news media. The SEC must recognize these rights. We will push this issue as hard as we can, because the public has a right to be alerted to corporate fraud as quickly and effectively as possible.”

The post Media-First Deutsche Bank Whistleblower Denied SEC Award appeared first on Whistleblower Network News.

FinCEN’s proposed rule implements the Anti-Money Laundering Act of 2020 (“AML”) and Anti-Money Laundering Whistleblower Improvement Act of 2022 (“AML WIA”), touted as the newest – and broadest – U.S. federal whistleblower laws. The AML was modeled after the Dodd-Frank Act’s whistleblower provisions, which established the U.S. Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”)’s whistleblower programs. The SEC program in particular is considered by anti-corruption advocates to be one of the most successful anti-corruption measures ever implemented by the U.S. government, recovering more than $6.3 billion in monetary sanctions since 2010.

Congress passed the AML WIA on December 23, 2022, aiming to strengthen enforcement of sanctions and anti-money laundering statutes by expanding incentives and protections for whistleblowers. Two attributes set the AML WIA apart from other existing federal whistleblower programs: the extremely broad scope of violations covered under the law, and the range of government agencies to which whistleblowers can make disclosures. The law has the potential to drastically expand the number of whistleblower tips received by U.S. law enforcement and the number of whistleblowers eligible for awards.

Congressional sponsors of the AML WIA legislation (Charles E. Grassley, Elizabeth Warren, and Raphael Warnock) wrote to FinCEN in 2024, demanding FinCEN’s “full implementation of the AML program” and to “establish confidentiality during investigations and secure pathways for whistleblowers to report tips or make claims.”

FinCEN’s proposed rules address the most important aspects of a functioning whistleblower program: procedures and protections for whistleblowers submitting information about potential violations, whistleblower award eligibility, and FinCEN’s process for adjudicating award applications. But the NWC argues that significant portions of the proposed rules fail to implement whistleblower protections required by the AML WIA or otherwise fail to protect whistleblowers as effectively as they could.

The NWC highlights that the proposed rule fails to adequately recognize and protect transnational whistleblowers. Existing whistleblower programs have demonstrated that transnational whistleblowers account for a significant share of tips received in the U.S., with the SEC program receiving over 5,000 international whistleblower tips from 130 countries in the 2021 fiscal year alone. Compared with domestic whistleblowers, international whistleblowers often face significantly higher risks when making disclosures and do so without the protections of strong U.S. anti-retaliation laws, the NWC says. The NWC further stresses that FinCEN’s proposed rules fail to provide sufficient guidance for international whistleblowers on how to qualify for the maximum protections under the AML WIA (as recommended by the Organization for Economic Co-operation and Development), and that it does not sufficiently guarantee international whistleblowers’ confidentiality.

The NWC identified what it says are inconsistencies between the proposed rule and the statute it implements – inconsistencies the NWC argues are forbidden under the Administrative Procedure Act. Under the AML WIA, whistleblowers retain the right to submit original information directly to any office within the Department of Justice (“DOJ”). This provides a large range of potential reporting channels for whistleblower tips, including DOJ embassy staff, who are often the U.S. government officials with whom international whistleblowers have the most contact. However, the NWC cites that FinCEN’s proposed rules do not establish procedures for handling information submitted to the DOJ; instead, it requires whistleblowers to file claims with FinCEN through its “Tip, Complaint, or Referral” form (“Form TCR”). The NWC argues that the proposed rules fail to allow whistleblowers to report to all channels allowed by the statute without facing prejudice in award adjudication.

The NWC also found that the proposed rules’ standards governing award eligibility and compensation timelines remain insufficiently defined, increasing the risk of whistleblower disqualification and threatening undue delays in compensation. NWC urges FinCEN to adopt more effective, whistleblower-friendly regulations to ensure the program successfully facilitates enforcement actions and advances national security interests.

“The whistleblower anti-corruption communities must insist that the final rules implement the law in line with Congressional intent,” says leading whistleblower attorney and NWC Chairman Stephen Kohn, “We’re at a pivotal turning point in the struggle against corruption. The AML Whistleblower Law is a potentially powerful tool, and the rules implementing it must effectuate that potentiality.”

The NWC launched a grassroots campaign to encourage whistleblowers supporters and anti-corruption advocates to comment on FinCEN’s proposed rules. The comment period for the proposed rule closes on June 1, 2026.

View the full list of NWC comments here.

The post Whistleblower Advocates Urge Changes To FinCEN’s Proposed Whistleblower Rules appeared first on Whistleblower Network News.

The case was brought to the government by two whistleblowers, who collectively received $2,940,000 from the settlements for their reports. Both whistleblowers, a former staff member and a former physician at Advanced Urology, alleged that the company billed government healthcare programs for medically unnecessary procedures. Specifically, the whistleblowers reported that Advanced Urology billed for a procedure known as Direct Visual Internal Urethrotomy (DVIU) while performing a less complicated dilation practice that differs from DVIU. Together, the whistleblowers alleged that Advanced Urology was designed to maximize revenue for Dr. Patel, and that it constructs health care fraud by attempting to bill programs such as Medicare and Medicaid, violating the False Claims Act, 31 U.S.C. §§ 3729, et seq., and the Georgia False Medicaid Claims Act, O.C.G.A. §§ 49-4-168.1, et seq.

The Federal False Claims Act is a primary U.S. federal Law used to combat fraud against the government. The Georgia False Medicaid Claims Act imposes civil liability on any person who knowingly presents a false claim to the Georgia Medicaid program, or a false or fraudulent claim for payment. Under the qui tam provisions of both Acts, individuals are encouraged to report, on behalf of the government, those who submit false claims. The laws also protect whistleblowers from employer retaliation and provide financial incentives to come forward.

This civil settlement resolves two lawsuits filed in the U.S. District Court for the Northern District of Georgia under the qui tam or whistleblower provisions of the False Claims Act: United States and State of Georgia ex rel. Lorraine Perumal-Szramel v. Advanced Urology, Inc. et al., No. 1:18-cv-4482-SCJ, and United States and State of Georgia ex rel. Himanshu Aggarwal, M.D. v. Jitesh V. Patel et al., No. 1:19-cv-2844-WMR.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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Attorney Stephen Kohn joins Jane Turner to sound the alarm on an urgent action alert regarding the Anti-Money Laundering (AML) Whistleblower Improvement Act. This new law is the most comprehensive award program ever passed—covering everything from drug cartels to sanctions violations—yet proposed regulations written and administered by the Financial Crimes Enforcement Network (FinCEN) now threaten the very confidentiality whistleblowers critically depend on to stay safe.

Act now—submit your comment before the June 1 deadline!

Go to www.whistleblowers.org/actions/fincen-rules to take action today.

• Use the direct link to submit your official public comment to regulations.gov.
• You can easily cut and paste the proposed comment provided by the National Whistleblower Center.

Your action is urgently needed. Massive public participation is critical right now to compel the Department of the Treasury to enact regulations that work as Congress intended and to protect those who risk everything to expose global corruption.

The post Urgent: Tell FinCEN to Defend Whistleblower Confidentiality and Fight Global Corruption appeared first on Whistleblower Network News.

The IRS Whistleblower Program mandates that whistleblowers who submit original information to the IRS that leads to a successful enforcement receive an award of between 15% and 30% of the sanctions collected by the government. Whistleblowers have contributed to the federal government recovering over $7.5 billion from tax fraud cases since the program’s inception. However, they have faced significant delays in receiving these mandated awards.

“This is a major victory for all whistleblowers,” said Stephen M. Kohn, Chairman of the National Whistleblower Center (NWC). “The overwhelming bipartisan support sends a powerful and positive message that whistleblowers are crucial to maintaining a fair and honest tax system. All eyes are now on the Senate.”

The IRS Whistleblower Program Improvement Act, introduced by Representatives Mike Kelly (R-PA) and Mike Thompson (D-CA), aims to directly benefit whistleblowers by requiring the IRS to pay interest on overdue award payments. The bill would also empower the Tax Court to review appeals of awards and strengthen confidentiality protections for whistleblowers.

Dean Zerbe, Senior Policy Analyst for the NWC, said, “Tax whistleblowers should be heartened by the Congressional support for the tax whistleblower program. Special thanks to Congressmen Mike Kelly and Mike Thompson for their leadership.”

The bill will now head to the Senate for consideration. The National Whistleblower Center has issued an action alert to the Senate urging for the passage of the bill. Take action to protect whistleblowers and fight tax fraud by writing to your Senator here.

The post “Major victory for all whistleblowers”: House Passes IRS Whistleblower Program Improvement Act appeared first on Whistleblower Network News.

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The dispute centers on Insect Shield’s contracts with the Department of Defense (DOD) to manufacture military uniforms treated with permethrin, an insecticide designed to protect soldiers from insects.

The government claimed that from 2015 to 2021, the company and its CEO failed to meet the contract’s quality-testing requirements. Specifically, the government alleged: “Insect Shield and Lane failed to follow the permethrin testing requirements by inappropriately combining results from different rounds of testing, re-labeling test samples to hide the true origin of the samples, performing re-tests of uniforms in excess of what the contract permitted, and concealing failing test results.”

This case was initiated by a whistleblower who filed a qui tam lawsuit on behalf of the United States under the FCA. These provisions allow private citizens and private parties to file lawsuits on behalf of the government to report fraud. Qui tam whistleblowers are eligible to receive between 15 and 30% of the government’s recovery. In return for her contribution, the whistleblower will receive $315,000.

A Department of Justice official stressed the need for contractors to follow the rules in public contracts, saying, “government contractors and subcontractors must comply with contractual commitments and share truthful information with the government.”

“Our Soldiers rely on government contractors to provide equipment that they can depend on while serving their country,” said Special Agent in Charge Keith Kelly of the Department of the Army Criminal Investigation Division, Fraud Field Office.

This settlement sends a strong message to government contractors across the country. Public money is closely watched, and any failure to follow the rules will be addressed. For both federal agencies and taxpayers, the case is a reminder that vigilance and accountability are central to the nation’s procurement system.

This case also shows how important qui tam whistleblowers are in uncovering possible fraud. Without these private citizens coming forward, many cases of misconduct in government contracts might go undetected.

The claims resolved by the settlement are allegations only, and there has been no determination of the defendants’ liability.

The post Military Uniform Manufacturer Pays $1.4M to Settle False Claims Act Allegations appeared first on Whistleblower Network News.

The SEC whistleblower program, established by the Dodd-Frank Act, incentivizes whistleblowers to report original, timely information in return for monetary awards between 10% and 30% of recovered sanctions over $1 million. The program guarantees whistleblowers’ identities remain confidential and anonymous, and can remain so until an award application is processed.

In order to be eligible for an award, federal law requires all whistleblowers to submit a Tip, Complaint, or Referral (TCR) form when providing information to the SEC. The SEC has cited numerous reasons why a TCR is essential to operating a whistleblower program, including increased efficiency and ability to manage high volume of tips, accurate record of what information the whistleblower deems important, and a clear indication the whistleblower seeks heightened confidentiality protections. The federal register states, “the requirement to file a TCR has been a necessary initial step for an individual to obtain treatment as a ‘whistleblower’ under our rules and, in our experience, has proved beneficial to the effective administration of our whistleblower program.”

The SEC’s strong commitment to using the TCR program is demonstrated through its provision that failing to submit a TCR form constitutes grounds for denial of an award. “The Commission has treated the failure to file a properly executed TCR as grounds for denial of a claim for award.” So, in order for any whistleblower to be eligible for a monetary award, they must file a TCR form.

With this in mind, some applicants are denied awards even after they submitted an appropriate TCR under the correct procedures because the SEC failed to review the TCR. For example, in a Final Order issued on February 26, the SEC denied an award to a whistleblower applicant who submitted a TCR, but whose information went unreviewed. The claimant challenged their award denial by stating, “it was a violation of the Commission’s Enforcement Manual not to search the TCR system before the opening of and during the Covered Action investigation.” Not only did the applicant submit a TCR, the information they provided was used in the investigation, “the overlap between the TCRs and the subject matter of the Commission’s enforcement action further reinforce that Claimant 2’s information was used and relied upon to open the investigation or otherwise significantly contributed to the investigation and enforcement action.” The Order demonstrates that whistleblowers are submitting valid TCRs and their information is being used to conduct investigations, but are being denied awards because these forms are not being examined. Here, the SEC did not open a submitted TCR relevant to an ongoing investigation, which is not consistent with their claim that TCRs are essential to operating an effective whistleblower program.

If this trend continues, it could have further consequences on whistleblowers’ ability to provide information and receive awards. If TCRs go unreviewed, cases of fraud could go undetected by federal agencies. If award incentives decrease, whistleblowers will be less likely to provide information, not wanting to risk speaking up without the chance they will be rewarded for doing so.

The post SEC’s Misuse of TCR System Has Consequences for SEC Whistleblowers appeared first on Whistleblower Network News.

These regulations are long overdue; They were codified by the Anti-Money Laundering Act (2020) and the Anti-Money Laundering Whistleblower Improvement Act (2022), but have not yet been fully implemented. This notice follows longstanding bipartisan pressure for FinCEN to use whistleblowers to enforce sanctions, anti-money laundering laws, and protect national security. The proposed regulations will finally fulfill these mandates.

The proposal outlines how whistleblowers can report violations promptly and securely, while detailing the award application process and eligibility criteria for making and adjudicating awards. Like the SEC’s program, whistleblowers may receive 10–30 percent of penalties collected if their tip leads to action by the Treasury or the Department of Justice. FinCEN recently launched a whistleblower portal, a major step after years of accepting tips without a dedicated public website.

While FinCEN’s long-awaited regulations are a small step towards making the program more accessible, advocates expressed heightened caution about the risk to whistleblowers’ safety and questioned whether the program would be effective in combating corruption.

The proposed regulation offers some confidentiality protections for whistleblowers who report to FinCEN, but not enough, according to the National Whistleblower Center. FinCEN will have full discretion to share a whistleblower’s identity with law enforcement, risking serious consequences for the whistleblower’s life and livelihood.

Stephen Kohn, Chairman of the National Whistleblower Center, expressed grave concern. “These are statutory rights identical to those in Dodd-Frank, which have made the SEC a welcoming environment for whistleblowers. These individuals are literally risking their careers and lives to step forward and report some of the most corrupt and dangerous criminal elements. These criminals are violating sanctions and putting illicit funds and drug money into the financial system. FinCEN’s final regulations should not stop at the bare minimum mandated by Congress…”

Whistleblowers and advocates welcome the first steps of change under FinCEN, but further work is needed before the program is safe for whistleblowers to use.

The post Whistleblower Advocates Raise Alarm Over Long-Awaited FinCEN Whistleblower Program Rules appeared first on Whistleblower Network News.