The U.S. Court of Appeals for the District of Columbia Circuit dismissed an appeal filed by the U.S. Department of Justice (DOJ) and Internal Revenue Service (IRS) challenging the right of whistleblowers to obtain a financial reward based on disclosing information that results in the criminal prosecution of tax evaders. The case in question involves whistleblowers who exposed a major international financial institution that was helping U.S. citizens evade taxes. The two whistleblowers will become the first to obtain a whistleblower reward based on a criminal tax prosecution.
About The False Claims Act
The Congress originally passed the False Claims Act during the Civil War. It was to protect the U.S. from treacherous contactors supplying the Union with faulty weapons and failing supplies. Congress has adjusted the act over the years to become one of the government’s premier tools for policing corporate fraud.
When a knowledgeable attorney like those found at The Michael Brady Lynch Firm files a False Claims Act lawsuit, he or she files it under a seal. This means it is completely confidential. There is also a full disclosure statement in the suit, which details the evidence collected by a whistleblower. You could be entitled to 15-30% of the funds recovered. In order to receive the reward, you must be the first one to file a case under the False Claims Act. This is why it is key to pick an experienced attorney to work quickly to get your compensation.
Historic Tax Whistleblowers Win
Oral arguments for the case were supposed to be next month. The DOJ and IRS argued that tax whistleblower law did not apply to criminal tax cases. However, attorneys for the whistleblowers worked for five years for their clients to obtain rewards based upon criminal prosecution. Because of the whistleblowers tips, the DOJ and IRS recovered $54.131 million in criminal penalties and civil forfeitures awarded against a major Swiss bank.
This dismissal helps future tax whistleblowers. Previously, the IRS gave the whistleblowers almost $5 million based on their $20 million restitution from the bank for back taxes. However, the IRS refused to pay the whistleblowers for the additional $54.131 million collected from the bank. Now, the whistleblowers will receive an additional award of almost $13 million.
This decision is an important step for bankers with knowledge of criminal tax frauds to expose them. Without these whistleblowers, American taxpayers could have lost millions each year from tax loopholes.
Premier Complex Litigation Attorneys
The Michael Brady Lynch Firm has successfully represented thousands of consumers and recovered millions of dollars for their clients. Our team of attorneys has been recognized as some of the most experienced and successful in the country. Attorneys from across America seek out our award-winning staff for our knowledge on complex litigation, scientific evidence development, negotiation strategies and trial tactics.
Most of all, our law office is resourceful and dedicated to pursuing any compensation you are due. Because of this, we have received a high degree of peer recognition and professional achievement, such as inclusion on numerous Plaintiff Steering Committees. We will take whatever legal measures are necessary when fighting for your rights to damages.
Therefore, if you believe you have uncovered evidence of fraud involving a government-funded program, contact us today. Our attorneys have represented many clients in the past with complex cases. We will work tirelessly to obtain results on your behalf.