Given the vital role that banks play in the nation’s and global economy, fraud and money laundering committed by banks jeopardizes not only the financial system but consumers as well. Not all banks and bank employees are honest and some commit major frauds. Some even violate U.S. sanctions by doing business with nations the U.S. has sanctioned, including Iran and Syria. Others allow and encourage money laundering for drug cartels or even terrorist groups. Fortunately, federal laws prohibit bank fraud and provide financial rewards to individuals who blow the whistle on fraudulent bank activity. If you have knowledge of fraud at a financial institution, consult the experienced whistleblower attorneys at Newman & Shapiro.
From our offices in Boston and Marblehead, Massachusetts, we represent whistleblowers of bank fraud throughout the nation. Well-versed in the applicable bank fraud laws, including The Financial Institutions Anti-Fraud Enforcement Act of 1990 (FIAFEA), The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), and the False Claims Act, we are committed to preserving the safety and soundness of the financial system. When you work with our legal team, we will help you obtain a just reward for reporting bank fraud.
How does a FIRREA/FIAFEA whistleblower claim work?
To be eligible for a reward for reporting bank fraud, a whistleblower must disclose information related to specific violations of FIRREA, including:
- Anti-money laundering violations
- Bad loan underwriting/servicing violations
- Embezzlement, theft or misapplication of funds by a bank officer or employee
- Making false statements or false entries in books and records
- Receiving illegal commissions or gifts in exchange for procuring loans
- Use of false statements with respect to loan applications
- False statements and overvaluing of securities
- Presenting a false claim to the government
- Concealment of assets from a government conservator, receiver or liquidator
- Mail fraud
- Wire fraud
In short, a wide variety of fraudulent conduct engaged in by a bank’s officers, directors, employees, or customers can result in penalties under FIRREA as well as a FIAFEA whistleblower reward. To pursue a whistleblower claim, the individual files a declaration under oath with the Department of Justice (DOJ), which will conduct an investigation to determine whether or not to prosecute the alleged violator.
The individual providing the information must be the original source, and the information must remain confidential while the DOJ investigates the matter. Moreover, reporting fraudulent bank activity is not enough. For a whistleblower to be paid a reward, the information must result in the government’s recovery of penalties. Given the exacting procedural rules for filing a FIAFEA whistleblower claim, it is essential to have proper legal representation.
That’s where Newman & Shapiro comes in. Our legal team has extensive experience representing all types of whistleblowers, including bank employees, executives, and third parties with knowledge of bank fraud. Over our many years of practice, we have developed strong working relationships with DOJ officials on cases involving loan fraud, mortgage fraud, embezzlement, and other FIRREA violations.
When you become our client, we will carefully assess your information to determine whether you have a viable whistleblower claim, help prepare the declaration according to DOJ requirements, and present the evidence to the attorney general. You should know that if the DOJ declines to bring fraud charges, we may still be able to pursue the claim independently with the DOJ’s approval. Knowing that bank fraud whistleblowers face the potential of career harm, our legal team will work tirelessly to protect your rights and your identity.
What is the whistleblower reward for reporting bank fraud?
A whistleblower who provides original, actionable information to the DOJ about FIAFEA/FIRREA violations is eligible to receive twenty to thirty percent of any recovery up to the first $1 million 10 percent to 20 percent of the next $4 million recovered, and 5 percent to 10 percent of the next $5 million recovered. As an example, if the government recovers $10 million or more, then the whistleblower award could be as much as $1.6 million, which is a just reward for keeping the financial system and the public safe.
Contact Our Bank Fraud Whistleblower Attorney
At Newman & Shapiro, we understand that individuals face potential career harm for blowing the whistle on bank fraud, which is why we will work tirelessly to protect your rights and your reputation. Additionally, employers are prohibited from retaliating against employees who report bank fraud under provisions of state and federal whistleblower laws. This means that you cannot be fired, demoted, or discriminated against in any way for reporting bank fraud.
Our whistleblower attorneys have a well-earned reputation for providing our clients with first-rate representation before the Department of Justice and in federal court. Knowing that dealing with the justice system can be complicated and intimidating, we will stand by every step of the way and help you navigate the process.
Although the statute of limitations for bank fraud is 10 years, the sooner you contact us, the sooner we can help with your claim. To have a successful whistleblower claim, it is crucial to expediently compile information, preserve any evidence, and identify witnesses while the details of the case are fresh. We bring to bear a deep understanding of whistleblower laws and a proven history of obtaining significant financial rewards. If you have knowledge of fraudulent activity, you may fear coming forward. Remember, we are here to help. Please contact our office today for a free evaluation of your case.