Tattletales Embraced as Whistle-Blower Programs Gain Support

When we were children, one of the worst things to be known as was a tattletale. But as grown-ups, disclosing secrets that get others in trouble goes by a more favorable nickname: whistle-blower. Whistle-blowing as a means to police corporate misconduct is gaining support. The federal government has trumpeted its accomplishments in recovering money based on tips, and Congress seems poised to extend the incentives provided to those with information about wrongdoing. The Justice Department has heralded that it recovered $5.69 billion, a record amount, in civil fraud cases under the False Claims Act in its last fiscal year. The law, which dates to the Civil War, authorizes recovery of up to triple damages and civil penalties for the submission of false or fraudulent claims to the federal government. The two biggest contributors to the record recovery were $3.1 billion from banks for faulty mortgages that were federally insured and $2.3 billion for health care fraud under the Medicare and Medicaid programs. More in the New York Times here.