On 24 June, a post on the Compliance and Enforcement blog from the Program on Corporate Compliance and Enforcement at the New York University School of Law refers to an attached report and says that regulators increasingly rely on whistleblowers for tip-offs. However, the post says that a concern is that whistleblowers themselves face severe costs to help uncover corporate fraud. However, there is no large-sample evidence on the consequences for whistleblowers. The attached report sets out to examine the costs for whistleblowers using information from lawsuits, a professional networking site, and background checks for up to 1,168 whistleblowers. In particular, the report investigates the career, financial, and social consequences for whistleblowers that filed lawsuits under the US False Claims Act against businesses accused of defrauding the government. It is said that the research results indicate that whistleblowers — especially rank-and-file employees — are subject to substantial financial costs; and that these results emphasise the importance of financial compensation for whistleblowers — for example in the form of cash-for-information whistleblower programmes.
The report is at –
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