Years without accountability for big corporations, banks, and Wall Street resulted in the greatest financial crisis since the 1930’s Depression. Eight million jobs were lost,
the housing market plummeted, businesses went bankrupt, and millions lost their personal savings and retirements. Consequently, more and more people have become aware of the devastating impact corporate fraud can create on the economy and individual Americans.
As a result, studies show that a greater number of employees are willing to become whistleblowers: turning in their employer for corruption, fraud, and wrongdoing. One of the motivating factors prompting employees to come forward is the incentive of financial reward that is paid out to whistleblowers who report false claims.
According to the federal government, there has been a spike in whistleblower cases filed with the U.S. government since 2005. Americans have become more exposed to the enormous corporate scandals involving subprime mortgage lenders, Bernie Madoff, or Enron–where the entire company has fallen apart and destroyed thousands of employees and shareholders’ financial futures, gravely impacting the economy. Consequently, there is a greater awareness concerning the importance of blowing the whistle on corporate fraud.
For example, just last week the federal government ordered Bank of America to pay a whistleblower close to a million dollars in interest and back wages and was required to reinstate an employee who showed great courage in reporting fraud and standing up against it.
This is a positive trend that will in turn protect consumers, employees, and hopefully help prevent future scandals from causing such devastating impact. Nevertheless, corporations fear such results. And now, a new law–the Dodd Frank Financial Reform law–has been implemented providing monetary rewards for whistleblowers who report financial fraud.
Good Georgia Lawyer represents whistleblowers in qui tam or false claims whistleblower actions. We encourage you to read here to learn more.
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