Exposing Corporate Fraud: How Whistleblowers Protect the Public

Corporate fraud doesn’t just hurt shareholders or regulators; it can devastate employees, consumers, and communities. Whether it’s falsified financial records, illegal kickbacks, or dangerous cover-ups, these schemes can go unchecked for years unless someone inside has the courage to come forward.

That’s where whistleblowers step in.

If you’ve witnessed fraud at your workplace, you may feel torn between doing the right thing and risking everything. But under federal and state laws, whistleblowers are protected, and in many cases, rewarded for reporting corporate misconduct.

At Morgan & Morgan, we fight for whistleblowers who want to expose wrongdoing, protect the public, and hold powerful companies accountable.

What Is Corporate Fraud?

Corporate fraud is illegal or unethical actions a company or its executives commits for financial gain. These actions are often concealed through intentional deception and can violate civil, criminal, or regulatory laws.

Common examples include:

• Accounting fraud: Falsifying earnings, hiding losses, or inflating revenue to mislead investors or regulators
• Securities fraud: Insider trading, market manipulation, or misleading shareholders
• Tax fraud: Underreporting income, overstating deductions, or creating sham transactions
• Healthcare fraud: Overbilling Medicare or Medicaid, false diagnoses, or kickbacks for prescriptions
• Government contract fraud: Overcharging, billing for work not performed, or violating bidding rules
• Environmental violations: Covering up toxic spills or failing to meet EPA standards while claiming compliance

Corporate fraud can hurt employees, investors, taxpayers, patients, and the general public. In many cases, the people who suffer the most have no idea that the fraud is happening until it’s too late.

How Whistleblowers Make a Difference

Whistleblowers are often the first and only line of defense against massive fraud. They’re employees, contractors, analysts, accountants, or insiders who spot misconduct and make the difficult decision to report it.

Whistleblower courage has brought to light some of the biggest fraud cases in U.S. history. These individuals helped:

• Recover billions of taxpayer dollars
• Prevent further harm to the public
• Shut down dangerous practices
• Prompt federal investigations and reforms

And they didn’t do it alone.

Legal Protections for Whistleblowers

Blowing the whistle can feel risky, and it often is. But federal and state laws offer powerful protections for those who come forward.

Depending on the type of fraud and where it occurred, whistleblowers may be protected under:

• The False Claims Act: Covers fraud against the government (e.g., Medicare or defense contracts) and allows whistleblowers to file qui tam lawsuits on the government’s behalf.
• The Sarbanes-Oxley Act: Protects employees of publicly traded companies who report corporate fraud.
• The Dodd-Frank Act: Offers financial rewards and anti-retaliation protections for SEC whistleblowers.
• OSHA Whistleblower Protection Programs: Cover a range of industries, from transportation to finance.

These laws generally protect whistleblowers from being fired, demoted, harassed, ostracized, or otherwise retaliated against for reporting wrongdoing.

You May Be Eligible for a Reward

In addition to legal protections, some whistleblowers are eligible for financial rewards.

Under the False Claims Act, whistleblowers (known as “relators”) can receive 15% to 30% of the amount recovered in a successful case. These lawsuits, called qui tam actions (from a Latin phrase meaning “on behalf of the king and themselves”), allow private citizens to sue companies that defraud the government and share in the recovery. This has led to multi-million-dollar payouts for individuals who exposed healthcare billing fraud, military contracting scams, and more.

Likewise, under the SEC Whistleblower Program, eligible individuals may receive 10% to 30% of monetary sanctions collected from companies engaged in securities fraud.

What to Do If You Suspect Corporate Fraud

If you’ve witnessed illegal or unethical behavior at your workplace, don’t ignore it, but don’t go it alone. Follow these steps to protect yourself and your potential claim:

• Document what you know: Save emails, reports, internal memos, or any other evidence discreetly and legally.
• Don’t confront anyone directly: Reporting fraud internally could result in retaliation or tip-offs. Speak to a lawyer first.
• Stay off company devices: Use a secure, personal device to research your legal options and communicate with counsel.
• Contact an experienced whistleblower attorney: This is crucial. Whistleblower laws are complex, and timing is everything, especially if you’re considering filing a qui tam lawsuit or seeking a reward.

Why You Need an Attorney

Corporate fraud cases are often high-stakes, heavily defended, and full of legal landmines. You need a team that knows how to navigate the system, protect your identity, and fight for your rights.

At Morgan & Morgan, our whistleblower attorneys are experienced in False Claims Act, SEC, and other fraud-related cases. We’ve helped clients nationwide report fraud, avoid retaliation, and pursue the compensation they deserve.

We understand the emotional and professional risks whistleblowers face, and we’ll be with you every step of the way.

Morgan & Morgan Fights for Whistleblowers

Corporate fraud doesn’t just hurt investors; it hurts everyone. If you have information about fraudulent practices within your company or industry, you have the power to make a difference.

And at Morgan & Morgan, you don’t have to do it alone. We have the resources to take on major corporations and protect whistleblowers at every stage of the process. Whether you're looking to file a claim or explore your options, our team is here to listen and fight.

Contact us today for a free, confidential case evaluation. You pay nothing unless we win.