Financial Institution Fraud

Recent revelations stemming from the financial collapse have revealed that many of America’s largest and formerly finest banking institutions have dealt with corruption and unscrupulous behavior. Fortunately, many whistleblowers have stepped forward to expose cases of financial institution fraud and help ensure that those who have committed crimes will be caught and punished.

Whistleblower Rights and Responsibilities

A whistleblower is any person who is brave enough to report lawbreaking on behalf of their company or their company’s employees. While many corporations look down on whistleblowers and try to shame or threaten them into silence, both the American government and the general public see whistleblowers as heroes in their own right. Increasingly, it is seen as being patriotic to be a whistleblower, since it assists the police and helps protect the economy. Whistleblowers are given special legal protection from their employers to prevent them from being threatened, and may even be entitled to a portion of any fines collected after a successful prosecution.

Seeking Experienced Legal Consultation

Any person who has incontrovertible proof of wrongdoing and feels morally compelled to speak out should seek legal counsel. Not all crimes are protected by whistleblower law, and persons who are not familiar with business law may in fact believe something is illegal when it is in fact both perfectly legal and common practice. Much of the cut-throat and vicious behavior in the business world today is in fact legally sanctioned so that ineffective and inefficient companies can be weeded out and out-competed by other companies. However, it is never legal for a company to cheat on taxes or abuse government funding, nor is it legal to lie to customers about the true nature of financial products.

Federal TARP Fund Fraud

The biggest field for whistleblowers today is abuse of federal grants, thanks in no small part to the federal TARP funds and other state and federal bailout programs. All of the “free money” handed out by the government comes with a large number of strings attached to ensure that it is not abused and that it goes towards fixing the financial system, not making it worse. Those who observe that their company is abusing federal TARP funds should immediately contact legal advisors, since this funding is vital for the recovery of the American economy and should not be wasted.

Profit Manipulation Fraud

Much of the rest of what is turned in by whistleblowers involves lying or manipulation on behalf of the company in order to increase profits. For example, many companies claim that municipal bonds are tax exempt in order to save on taxes, even though this is not the case. It is also not unusual for corporations to overcharge or charge “special rates” to pension funds and municipal governments in order to drive up profits, especially since those funds often are unable to rapidly shift from one investment firm to another. Kickbacks are also common, yet illegal, and anyone who observes kickbacks being exchanged should have no fear in contacting the proper authorities.

Whistleblower Compensation

Whistleblowers are often the only way that a major corporation’s ill dealings will ever be found out, and so those who observe such financial impropriety should seek legal advice and research the relevant laws. Praise and even financial rewards await for those who blow the whistle on fraud, and in many cases those who stand up are rewarded with better jobs elsewhere. Not all financial organizations are keen on fraud, and having someone known to be trustworthy and moral is often a strong asset for financial corporations who want their customers and their government to trust them.