Whistleblower
Practice Overview
Whistleblower claims can result in complicated compliance problems and serious damage to a company’s reputation and brand. Buckley counsels and defends businesses and individuals facing these often serious allegations and complex claims. Our team navigates clients through and beyond internal investigations, government enforcement actions, and whistleblower and qui tam actions arising out of the False Claims Act (FCA); Sarbanes-Oxley Act of 2002 (SOX); Dodd-Frank Wall Street Reform and Consumer Protection Act; Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA); and other whistleblower statutes.
Our attorneys work with clients to draft and implement whistleblower policies and procedures, as well as establish internal reporting mechanisms such as hotlines and ombudsmen. We conduct reviews of existing whistleblower programs and revise existing policies and procedures. In the event a claim should ensue, we assist with internal investigations in response to allegations of wrongdoing, address Securities and Exchange Commission (SEC) disclosure issues and render appropriate recommendations for remediation and reporting, as well as counsel clients in connection with retaliation claims.
Our team includes former government prosecutors, SEC attorneys, and seasoned litigation defense counsel. Notably, one of our team members is a 20 year veteran of the SEC and former Chief of the Office of Market Intelligence, who was involved in whistleblower rule writing and the organization and launch of the SEC’s Whistleblower Office called for by Dodd-Frank. Another served as Chief of the Civil Division of the Manhattan U.S. Attorney’s Office (Southern District of New York, SDNY), and established and supervised the SDNY’s Civil Frauds Unit, which handles whistleblower investigations and lawsuits under the FCA and FIRREA.
Representative matters:
- Led an internal investigation for a publicly traded bank into whistleblower claims of AML noncompliance
- Handled an internal investigation for a publicly traded bank into whistleblower claims of Suspicious Activity Report improprieties
- Directed investigation for a publicly traded mortgage originator into allegations of appraisal fraud
- Led an internal investigation for a publicly traded company into allegations of noncompliance with rules and regulations governing when costs could be sought from the federal government
- Handled a retaliation investigation for a top 10 financial institution relating to numerous allegations of improper mortgage practices
- Successfully represented a top mortgage loan servicer in an FCA qui tam investigation into servicing and loss mitigation activities, in which the government declined to intervene in the case; the district court dismissed the case on motion, and the Sixth Circuit upheld the dismissal
- Successfully represented a national financial services firm in an FCA qui tam investigation by the U.S. Attorney’s Office for the SDNY, in which the government declined to intervene in the case and the relator’s case was voluntarily dismissed
Articles
Special Alert: Supreme Court limits definition of “whistleblower” in potentially hollow victory for public companies
On February 21, the U.S. Supreme Court issued its opinion in Digital Realty Trust, Inc. v. Somers , a long-anticipated case that clarifies who is protected as a “whistleblower” under the Dodd-Frank Act’s anti-retaliation provisions. In a unanimous decision penned by Justice Ginsburg, the Court held...
Special Alerts"Supreme Court limits definition of ‘whistleblower’ in potentially hollow victory for public companies" by Christopher F. Regan, Thomas A. Sporkin, and Matthew E. Newman (Westlaw)
On February 21, the U.S. Supreme Court issued its opinion in Digital Realty Trust, Inc. v. Somers, a long-anticipated case that clarifies who is protected as a “whistleblower” under the Dodd-Frank Act’s anti-retaliation provisions In a unanimous decision penned by Justice Ginsburg, the Court held...
Articles"Cooperation in False Claims Act investigations: The benefits of conducting a proactive internal investigation" by Andrew W. Schilling (Bloomberg Law)
Most companies that receive a civil investigative demand (CID) in a False Claims Act (FCA) investigation decide early that they will ‘‘fully cooperate’’ with the government’s investigation. That’s an easy decision because there really is no alternative: Failure to cooperate with the Justice...
Articles"The False Claims Act seal: Does it bind and gag the defendant?" by Andrew W. Schilling and Megan E. Whitehill (Business Crimes Bulletin)
A company that finds itself the target of a federal fraud investigation often faces the fraught question of whether it may, or even must, disclose the existence of that investigation to third parties, such as its investors, shareholders, major creditors, or insurers. The question can be even more...
Articles"Why securities lawyers are the new employment lawyers" by Christopher F. Regan, Thomas A. Sporkin, and Matthew E. Newman (Law360)
In early 2018, corporate America will be waiting with bated breath as the U.S. Supreme Court decides a game-changing whistleblower retaliation case. For employees thinking about blowing the whistle on financial malfeasance, this decision will resolve a circuit split and clarify when protections...
ArticlesDodd-Frank Anti-Retaliation Provision May Lead to More Lawsuits That Raise Compliance Issues
Much attention has been focused on the increasing role of whistleblowers in the government’s pursuit of financial fraud. Several federal statutes create bounty programs, allowing whistleblowers who bring fraud to the government’s attention to recover significant sums. The Dodd-Frank Wall Street...
ArticlesNew York Becoming the Leading Venue for Financial Fraud Whistleblower Suits
Prolific bank robber Willie Sutton reportedly once said he robbed banks because "that's where the money is." Judging by recent trends, whistleblowers might now give the same reason for filing their financial fraud suits in New York, which has quickly become the venue of choice for financial fraud...
ArticlesWhistle-Blower Bounties May Encourage Residential Mortgage-Backed Securities Fraud Reporting
The False Claims Act, 31 U.S.C. § 3729, which has been around since the Civil War, permits whistle-blowers with information about fraud perpetrated upon the U.S. government to bring civil fraud suits on behalf of the United States and share in the recovery. While much attention is paid to the...
Articles
News & Blogs
University settles whistleblower FCA claims
On February 11, the DOJ announced a $2.5 million settlement with a South Carolina university to resolve allegations that the university violated the False Claims Act (FCA) by submitting false claims to the U.S. Department of Education. According to the announcement, between 2014 and 2016, the...
InfoBytesThomas A. Sporkin quoted in Agenda article, “SEC after shutdown: ‘It’s going to be tough’”
Thomas A. Sporkin was quoted on January 28, 2019 in an Agenda article, “SEC after shutdown: ‘It’s going to be tough,’” which discussed the aftermath of the government shutdown and how it affects the entire agency from initial public offerings to enforcement and investigative work. The article...
In The NewsNYDFS issues whistleblowing program guidance and best practices
On January 7, NYDFS issued guidance providing principles and best practices that all NYDFS-regulated institutions “regardless of industry, size, or number of employees” should consider when designing and implementing a robust whistleblowing program, which the department considers to be an essential...
InfoBytesNYDFS fines international bank $15 million after whistleblower investigation
On December 18, NYDFS announced a $15 million settlement with an international bank and its New York branch resolving allegations stemming from an investigation into the governance, controls, and corporate culture relating to the bank’s whistleblower program. According to the announcement, NYDFS’...
InfoBytesForeclosure firm and affiliates agree to DOJ settlement resolving FCA allegations
On December 4, the U.S. Attorney for the Southern District of New York announced that a New York foreclosure law firm and its wholly-owned affiliates—a process server and a title search company (defendants)—have agreed to pay $4.6 million to resolve False Claims Act allegations claiming that...
InfoBytesThomas A. Sporkin quoted in Law360 article, “SEC's whistleblower program hits its stride in 2018”
Thomas A. Sporkin was quoted on November 19, 2018 in Law360 article, “SEC's whistleblower program hits its stride in 2018,” which discussed the SEC whistleblower program’s success and the proposed amendments. The article stated, “Since the program began, whistleblowers have helped the SEC secure...
In The NewsDOJ settles FCA allegations with mortgage lender for $13.2 million
On October 19, the DOJ announced a $13.2 million settlement with a mortgage lender resolving allegations that the company violated the False Claims Act (FCA) by falsely certifying compliance with the Federal Housing Administration (FHA) mortgage insurance requirements in violation of the False...
InfoBytesSEC announces second-largest whistleblower award; waives “voluntary” requirement for one claimant
On September 6, the SEC announced a whistleblower award totaling more than $54 million— $39 million to one (the second-largest award given under the SEC’s whistleblower program) and $15 million to another—for critical information and continued assistance, which helped the agency bring an...
InfoBytesSEC awards whistleblower $1.5 million after reducing amount for reporting delay
On September 14, the Securities and Exchange Commission (Commission) announced a whistleblower award likely to yield the whistleblower more than $1.5 million for volunteering information that led to a successful enforcement action. In its order , the Commission notes that it “severely reduced the...
InfoBytesCFTC announces multiple whistleblower awards totaling $45 million
On August 2, the Commodity Futures Trading Commission (CFTC) announced multiple whistleblower awards, totaling $45 million, to individuals who volunteered information that led to successful enforcement actions. Earlier in July, the CFTC also announced its largest award, of approximately $30 million...
InfoBytes
Our Whistleblower Team
Partners
FYI
"The False Claims Act seal: Does it bind and gag the defendant?" by Andrew W. Schilling and Megan E. Whitehill (Business Crimes Bulletin)
"Why securities lawyers are the new employment lawyers" by Christopher F. Regan, Thomas A. Sporkin, and Matthew E. Newman (Law360)
Recent Blog Posts
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February 13, 2019
University settles whistleblower FCA claims
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January 17, 2019
NYDFS issues whistleblowing program guidance and best practices
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December 20, 2018
NYDFS fines international bank $15 million after whistleblower investigation
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December 7, 2018
Foreclosure firm and affiliates agree to DOJ settlement resolving FCA allegations
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October 23, 2018
DOJ settles FCA allegations with mortgage lender for $13.2 million