Month: January 2024

Action #7 of 2024 Make National Whistleblower Day a Federal Day of Observance

Today is our last of seven days of action with the NWC to start the new year. Today’s action is big. As many of you know, each year, the National Whistleblower Center holds a celebration for National Whistleblower Day. Congress recognizes the day each year. Yet, neither Congress nor the White House has taken action to permanently recognize July 30 as National Whistleblower Day.

On July 30th, 1778, the Founding Fathers instituted the first U.S. Whistleblower law to protect the government against fraud. This is an important part of American history, and one that should be celebrated. I have long supported whistleblowers. A Marist Poll conducted by Whistleblower Network News demonstrated that the majority of voters in the United States support whistleblowers. They also support increased Whistleblower protections. This bipartisan support for whistleblowers would surely extend to a Federal Day of Observance, like National Whistleblower Day.

Please join with me in urging President Biden to take executive action on behalf of whistleblowers. In doing so, President Biden would be taking a tremendous step forward. This would enhance the federal government’s recognition of the importance of whistleblowers.

Specifically, I am advocating for a requirement. It should mandate that federal agencies educate their employees about their right to blow the whistle. They should also celebrate the contributions whistleblowers have made to their agency and our democracy every year on July 30th.

Please urge President Biden to sign an Executive Order setting forth the following:

(1) July 30th is designated as “National Whistleblower Appreciation Day”; and

(2) The Federal Government shall implement the intent of the Founding Fathers, as reflected in the legislation passed on July 30, 1778 (relating to whistleblowers), by requiring each executive agency to recognize National Whistleblower Appreciation Day by—

(A) informing employees, contractors working on behalf of the taxpayers of the United States, and members of the public about the legal right of a United States citizen to “blow the whistle” to the appropriate authority by honest and good faith reporting of misconduct, fraud, misdemeanors, or other crimes; and

(B) acknowledging the contributions of whistleblowers. They play a vital role in combating waste, fraud, abuse, and violations of laws and regulations of the United States.

We must recognize the courageous contributions that whistleblowers have made to rooting out waste, fraud, and abuse. Whistleblowers are credited with bringing in billions of dollars per year to U.S. government coffers. The culture around whistleblowers, though, remains that of being ostracized and retaliated against.

Now more than ever, we need a permanent day of recognition for whistleblowers. This will show our nation’s commitment to truth, anti-corruption, and effective law enforcement. Help us make each July 30th National Whistleblower Day. This will change the culture. We can truly honor the contributions of whistleblowers. We will also foster their courage to speak up about wrongdoing.

Please send this prewritten email template to your officials asking that they recognize National Whistleblower Day. This day is about much more than an event or a holiday. It’s about changing the culture around whistleblowing in federal agencies. Check out more info here.

Recognized by the National Whistleblower Center (NWC), Tracie Burke is Louisiana author of motiontoquash.org She can be reached at tracie@motiontoquash.org. Motion to Quash LLC successfully promoted legislation. This legislation supports the Anti-Money Laundering Act of 2020 and amendments to the Whistleblower Protection Act. Please Support journalism in the public interest by contributing today. Click here to donate Motion to Quash ISSN 2644-1594 is the copyrighted property of Motion to Quash LLC 2019.  NWC’s mission is to support whistleblowers. They help whistleblowers in their efforts to expose corruption. They also help prosecute wrongdoing around the world. 

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Action #6 of 2024 Strengthen the CFTC Whistleblower Program

The CFTC Whistleblower Program is in danger of being a victim of its own success. When the CFTC whistleblower rewards program was introduced, a fund was created to pay whistleblowers using the sanctions collected from whistleblower tips. However, this fund was capped at $100 million. Since the introduction of the program just over a decade ago, so many whistleblowers have come forward that this fund is almost out. 

Urge Congress to save the CFTC Whistleblower Program from its ongoing funding crisis by passing the bipartisan CFTC Whistleblower Fund Improvement Act of 2023.

The CFTC Whistleblower Program has been an immense success. The CFTC reports that roughly 30% of all CFTC enforcement investigations stem from whistleblowers and that over $3 billion in sanctions have been collected thanks to whistleblowers. The agency has correspondingly awarded almost $350 million to qualified whistleblowers.

In recent years, the program has grown in ways unimaginable when it was established in 2010. In its first 18-months in existence, the CFTC Whistleblower Program received only 58 whistleblower tips. In the 2023 Fiscal Year by comparison, the program received a record 1,530 tips.

This remarkable growth has resulted in a funding crisis, however, as a Congressionally-set cap on the fund used to finance the program cannot accommodate the current size of the program. The Consumer Protection Fund is entirely funded by sanctions paid by fraudsters but is capped at $100 million. In recent years, the restrictive cap has caused the CFTC to delay the issuance of some whistleblower awards and raise the possibility of needing to furlough staff.

The bipartisan CFTC Whistleblower Fund Improvement Act of 2023 would save the CFTC Whistleblower Program by providing a long-term fix to the funding crisis at no cost to taxpayers. The bill simply raises the cap on the Consumer Protection Fund to $300 million.

The CFTC Whistleblower Program cannot be a victim of its own success. A simple technical fix can allow this much-need program to continue to flourish.

NWC’s Chairman of the Board Stephen M. Kohn recently wrote an article calling for the passage of the CFTC Whistleblower Fund Improvement Act:

The CFTC whistleblower program has been a remarkable success story. It demonstrates the transformative effect a well-run modern whistleblower award program can have on the enforcement efforts of a regulatory agency. The bipartisan Whistleblower Fund Improvement Act will ensure that the CFTC whistleblower program will not be a victim of its own success and can continue to help root out fraud in the U.S. derivatives markets.”

Please send this prewritten email template to your officials DEMANDING that they pass the CFTC Fund Improvement Act in order to increase the cap on the fund. This will ensure that whistleblowers may continue to get paid, and this program can continue to work. Check out more info here.

Recognized by the National Whistleblower Center (NWC), Tracie Burke is Louisiana author of motiontoquash.org. She can be reached at tracie@motiontoquash.org. Motion to Quash LLC successfully promoted legislation that supports the Anti-Money Laundering Act of 2020 and amendments to the Whistleblower Protection Act. Please Support journalism in the public interest by contributing today. Click here to donate Motion to Quash ISSN 2644-1594 is the copyrighted property of Motion to Quash LLC 2019.  NWC’s mission is to support whistleblowers in their efforts to expose and help prosecute corruption and other wrongdoing around the world. 

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Action #5 of 2024: Fix FCA loopholes

Thanks for all your support so far! We’ve completed over half of our actions to kick off 2024, and we only have three more to go! Today’s action is very important. The qui tam provision of the False Claims Act is under attack, even though reports by whistleblowers are responsible for over 70% of recovered assets under the FCA (amounting to over $50 billion). 

Please send this prewritten email template to your Representative DEMANDING that they pass the Administrative False Claims Act in order to close major loopholes in the law. Check out more info here.

Write your representative today regarding recent attempts to undermine the False Claims Act by corporate interests and huge lobbying powers. In a June, 2023 FCA whistleblower case, Supreme Court Justice Clarence Thomas wrote a dissent containing language which questioned the constitutionality of the FCA’s whistleblower provisions. In the following months, multiple motions picking up on Thomas’ line of reasoning were filed. These motions pose a major threat to the United States’ most important and effective anti-fraud law.

S.659 – Administrative False Claims Act of 2023, introduced by Senator Charles Grassley (R-Iowa) would close a loophole that fraudsters seek to exploit. It has already been passed unanimously in the Senate, and now it is up to the House to pass it.

The False Claims Act has been extraordinarily successful since its 1986 amendment, recovering over $72 billion in fraud between 1986 and 2022, according to the Department of Justice. Over 70% of the funds recovered have been triggered by qui tam, or whistleblower, cases. The FCA Qui tam provision has not only been lauded by both Republicans and Democrats for being the most effective tool for fighting fraud, but it is also one of few government programs that brings money back into the pockets of the American people while protecting them.

I urge you to prevent the attempts to weaken the False Claims Act. Please urge your representatives to get this bill to the floor of the house as quickly as possible. Protect the American people and keep lobbyists and private interests out of the pockets of everyday taxpayers and away from the brave whistleblowers who use the False Claims Act to root out fraud.

If you have any questions regarding this initiative and the proposed changed, please contact the National Whistleblower Center at info@whistleblowers.org. Feel free to learn more at: www.whistleblowers.org/campaigns/protect-the-false-claims-act/.

Recognized by the National Whistleblower Center (NWC), Tracie Burke is Louisiana author of motiontoquash.org. She can be reached at tracie@motiontoquash.org. Motion to Quash LLC successfully promoted legislation that supports the Anti-Money Laundering Act of 2020 and amendments to the Whistleblower Protection Act. Please Support journalism in the public interest by contributing today. Click here to donate Motion to Quash ISSN 2644-1594 is the copyrighted property of Motion to Quash LLC 2019.  NWC’s mission is to support whistleblowers in their efforts to expose and help prosecute corruption and other wrongdoing around the world. 

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Action #4 of 2024 Support the IRS Whistleblower Program Improvement Act

The Internal Revenue Service (IRS) fails to compensate whistleblowers in a timely manner. These delays, which the IRS admits are average over 10-years, cause untold hardship to whistleblowers, many of whom have lost their jobs and careers, and their only hope for economic survival is the compensation promised under law.

On behalf of the National Whistleblower Center, please support reform and strengthen the IRS Whistleblower Program by supporting the IRS Whistleblower Program Improvement Act of 2023. 

Please send this prewritten email template to your Congressional officials DEMANDING that they pass the IRS Whistleblower Improvement Act, which would solve this issue in addition to other problems.

Check out more info here.

Since it was established in 2006, the IRS Whistleblower Program has become an integral part of the IRS’s enforcement efforts. The program, which offers monetary awards and anti-retaliation protections to individuals who report large-scale tax fraud, has allowed the U.S. to recover over $6.6 billion from wealthy tax cheats and corporations non-compliant with tax law.

In recent years, however, the program has been plagued by a number of issues and its efficacy is waning. Most notably, the program suffers from massive delays and whistleblowers are not able to remain anonymous before Tax Court. 

The bipartisan IRS Whistleblower Program Improvement Act addresses these issues and others through six common sense reforms: 

1. Clarifies a de novo standard of review for Tax Court appeals 

2. Incentivizes timely award disbursal 

3. Establishes a presumption of anonymity for whistleblowers 

4. Ends the sequestration of whistleblower awards 

5. Improves the program’s annual report to Congress 

6. Modifies the treatment of attorney’s fees to be in line with other whistleblower programs.

In addition to bipartisan support, the bill is supported by whistleblower advocacy groups such as National Whistleblower Center. 

A strong IRS Whistleblower Program is key to closing down the tax gap and holding tax cheats accountable. The IRS Whistleblower Program Improvement Act goes a long way in making this possible. 

Recognized by the National Whistleblower Center (NWC), Tracie Burke is Louisiana author of motiontoquash.org. She can be reached at tracie@motiontoquash.org. Motion to Quash LLC successfully promoted legislation that supports the Anti-Money Laundering Act of 2020 and amendments to the Whistleblower Protection Act. Please Support journalism in the public interest by contributing today. Click here to donate Motion to Quash ISSN 2644-1594 is the copyrighted property of Motion to Quash LLC 2019.  NWC’s mission is to support whistleblowers in their efforts to expose and help prosecute corruption and other wrongdoing around the world. 

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Action #3 of 2024 Strengthen the SEC Whistleblower Program

Motion to Quash LLC urges Congress to strengthen the SEC Whistleblower Program and protect internal corporate whistleblowers by (1) passing the bipartisan SEC Whistleblower Reform Act of 2023 and (2) Calling on the SEC to broaden its definition of a voluntary whistleblower. 

 The SEC Whistleblower Program has revolutionized the enforcement efforts of the SEC. Since it was established in 2010, the program has recovered over $6.3 billion in sanctions from fraudsters, allowing over $1.5 billion to be returned to harmed investors. However, it has the potential to work even better if we fix these two problems.

Problem #1: One of the keys to the program’s success are the anti-retaliation protections provided to whistleblowers. Whistleblowers all too often face devastating consequences for blowing the whistle and these protections are key in both offering relief to brave whistleblowers and in incentivizing would-be-whistleblowers to come forward despite the threat of retaliation.

Unfortunately, a 2018 Supreme Court ruling weakened the program by stripping anti-retaliation protections from whistleblowers who report to internal compliance programs but not directly to the SEC. Since a vast majority of whistleblowers report internally this ruling has been devastating for whistleblowers. 

The bipartisan SEC Whistleblower Reform Act would restore anti-retaliation protections for internal whistleblowers and make a number of other small common sense reforms to strengthen the program. The bill is widely supported by whistleblower advocacy groups including National Whistleblower Center. Corporate whistleblowers have proven to be essential in keeping our markets fair and free of fraud. They need to be protected. 

Problem #2: The regulations approved by the SEC 12 years ago continue to violate the statutory rights granted whistleblowers under the Dodd-Frank Act and strip otherwise qualified whistleblowers of their rights. For instance, whistleblowers who first report to the news media have been denied protection and compensation, even though the law itself does not exclude them from protections. We know that 20% of FCPA prosecutions by the DOJ stem from tips by the media, and yet, the regulations by the SEC have cut these sources off from U.S. whistleblower qualifications, undermining the anti-corruption Strategy outlined by the White House. 

Congress must tell the SEC not to exclude whistleblowers who have informed the media or other Federal agencies first from their definition of whistleblowers with “original information.” Please see more info here: www.whistleblowers.org/campaigns/reform-sec-regulations/. 

https://motiontoquash.org Recognized by the National Whistleblower Center (NWC), Tracie Burke is Louisiana author of Motion to Quash. She can be reached at tracie@motiontoquash.org.Motion to Quash LLC  successfully promoted legislation that supports the Anti-Money Laundering Act of 2020 and amendments to the Whistleblower Protection Act. Please Support journalism in the public interest by contributing today. Click here to donate Motion to Quash ISSN 2644-1594 is the copyrighted property of Motion to Quash LLC 2019.  NWC’s mission is to support whistleblowers in their efforts to expose and help prosecute corruption and other wrongdoing around the world. 

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Action #2 of 2024 DOJ must accept Confidential/Anonymous Disclosures

The Department of Justice still hasn’t implemented procedures for dealing with anonymous and confidential whistleblowers who report violations of the Bank Secrecy Act, despite being legally required to do so since 2021.

Since January 1, 2021 the U.S. Department of Justice (DOJ) has been required, as a matter of law, to accept anonymous and confidential whistleblower disclosures concerning violations of the Bank Secrecy Act, including illegal money laundering and the use of crypto currency exchanges to facilitate violations of law.

In December 2022, this requirement was by law extended to whistleblowers, worldwide, who wish to report violations of sanctions covering Russia, Hamas, ISIS, and other covered entities.

In contempt of its legal requirements the Justice Department has ignored this law, and has failed to adopt regulations permitting anonymous whistleblowing. Congress did its job, Justice has dropped the ball. Congress must demand that the Attorney General fully implement the United States Anti-corruption Strategy as a critical national security measure. Ask Congress to contact the Department of Justice to remind them of their obligations to fully implement the law. We know that whistleblowers can be the best asset to the fight against corruption when given the proper protections and incentives, but they — and by extension, our democracy — are vulnerable when these protections are eroded.

Please see the letter sent by NWC Chairman Stephen Kohn to the Department of Justice and Department of Treasury here for specific details: https://kkc.com/wp-content/uploads/2023/10/AML-Rules-Letter.pdf. See more information at https://www.whistleblowers.org/enact-aml-whistleblower-rules/.

Recognized by the National Whistleblower Center (NWC), Tracie Burke is Louisiana author of Motion to Quash. She can be reached at tracie@motiontoquash.org.Motion to Quash LLC  successfully promoted legislation that supports the Anti-Money Laundering Act of 2020 and amendments to the Whistleblower Protection Act. Please Support journalism in the public interest by contributing today. Click here to donate Motion to Quash ISSN 2644-1594 is the copyrighted property of Motion to Quash LLC 2019.  NWC’s mission is to support whistleblowers in their efforts to expose and help prosecute corruption and other wrongdoing around the world. 

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Action #1 of 2024 Call on FinCEN to Enact AML Regulations

In 2022, Congress passed the Anti-Money Laundering (AML) Whistleblower Improvement Act in December 2022. The law establishes a whistleblower award program for individuals who report money laundering and sanctions violations and is the most important anti-corruption law passed in decades.

Money laundering is intimately tied to corruption around the globe. Because the AML Whistleblower Program has a transnational reach, violations can occur anywhere and whistleblowers do not need to be U.S. citizens to qualify for awards, it is uniquely positioned to help U.S. authorities tackle corruption overseas, including the most pressing national security crises like the war between Hamas and Israel, the war between Russia and Ukraine, terrorist financing, and drug trafficking. It is vital that FinCEN implement its whistleblower program quickly and that its regulations fulfill the mandate in the U.S. Strategy on Countering Corruption.

However, despite the urgent nature of this issue, the U.S. Treasury Department and Financial Crimes Enforcement Network (FinCEN) have yet to implement the AML Whistleblower program, nor regulations for the AML Whistleblower Improvement Act.

Contact your legislators and urge them to please DEMAND that FinCEN consider the following in order to maximize the law’s anti-corruption potential:

I. Ensure that the process for qualifying as a whistleblower aligns with U.S. anti-corruption priorities.
a. Allow whistleblowers identified in case investigations to be eligible for rewards, rather than by mandating technical form requirements for whistleblower reward eligibility.
b. Maintain the SEC’s “Three Conditions” for qualifying as a whistleblower, but expand the definition of “Voluntary” to its standard definition.
c. Ensure that critical whistleblowers have the right to make use of the AML Whistleblower Program.

II. Protect Whistleblowers.
a. Secure the Confidentiality & Anonymity of AML whistleblowers in ALL ongoing Federal investigations involving their disclosers.
b. Establish Consistent Inter-Agency Protocol with respect to Whistleblowers who have participated in crime.
c. Do not Incentivize – and absolutely do not require – Internal Reporting prior to filing AML claims with FinCEN, but ensure that those who file internally first maintain award eligibility.

III. Ensure that whistleblowers are fully compensated in a timely manner.
a. Give full force to related action provisions.
b. Do NOT place a cap on whistleblower rewards.
c. Establish and abide by a strict deadline for paying awards.

Please refer to the National Whistleblower Center’s (NWC) AML Regulations Webpage, whistleblowers.org/enact-aml-whistleblower-rules, for more information on our requests.

Recognized by the National Whistleblower Center (NWC), Tracie Burke is Louisiana author of Motion to Quash. She can be reached at tracie@motiontoquash.org. Motion to Quash LLC  successfully promoted legislation that supports the Anti-Money Laundering Act of 2020 and amendments to the Whistleblower Protection Act. Please Support journalism in the public interest by contributing today. Click here to donate Motion to Quash ISSN 2644-1594 is the copyrighted property of Motion to Quash LLC 2019.  NWC’s mission is to support whistleblowers in their efforts to expose and help prosecute corruption and other wrongdoing around the world. 

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