What is Involved in a Financial Whistleblower Claim

As we discuss in our video, we first work to determine what type of fraud does the whistleblower wish to reveal. In Fortune 500 companies, fraud often involves financial irregularities. David Connlly of Freeman and Mills discussed fraud in more detail. David is a forensic accountant – a lawyer and a CPA. Some of his cases have resulted in verdicts of tens of millions of dollars. He is qualified to testify in court on behalf of whistleblowers and the law firms like ours or ask him for a consult.

Examples of fraud include, David says, include personal abuse by a director or partner where they are taking advantage of their position and causing a misappropriation of the assets of the company. People and entities with an interest in this type of fraud include shareholders and governmental agencies that didn’t get what they thought they were buying or the taxes they thought they were entitled to.

Some of the typical questions David asks a whistleblower are:

  • Tell us what the facts are
  • What documentation substantiates the facts – which many whistleblowers are able to provide

His firm also requests from the company the right to open up their books and look at their documentation.

Attorney Danz asked is the typical whistleblower a secretary, accountant, or higher ups? David responded that in the last case he worked on, as of the date of the video, the whistleblower was the secretary for the corporate counsel.

David then discusses one optic cable company trying to cheat another company. Whistleblower claims are generally within the company, he says, but he looks at all types of financial claims including claims across companies.

A recent case that involved a large national company in America took several months to investigate and make a report to the Board of Directors. He says he’s usually retained by the company, through their board of directors.