Complex Schemes - Why we need whistleblowers

In a September 2, 2008, posting on Bloomberg.com, Joe Mysak describes a municipal market bond scheme and a whistleblower's effort to educate the IRS about how the scheme works. Mysak includes the following quote in his article. "The thing about whistleblowers is that they speak in a language few people can understand, until you come across someone who knows exactly what they're talking about and says, 'Uh-oh.'"

The whistleblower's efforts to disclose the fraud reads more like those of a gentle teacher educating an interested student than it does the old stereotypical notions of how "informants" share information. No dark alleys here, no weasely snitching, no questionable motives. Just a very knowledgeable person working to keep the Service abreast of how complicated fraud schemes are playing out today.

The sheer size of those schemes, like the municipal market scheme described in Mysak's article, may give a potential whistleblower pause. How can so many people be violating the law? Unfortunately, tax fraud schemes, Medicare schemes, and patterns of false claims to the government are often large scale and everyday activity in some places. The schemes are so complicated, and the regulations change so quickly, the government can't keep up. Insiders, knowledgeable outsiders, and the simply observant should step up when they see possible instances of fraud. Otherwise, those engaged in the fraud will just keep diverting government money improperly. None of us can afford that.

Would-be whistleblowers should take note. Blowing the whistle is going to be frustrating. Be prepared to take on the role of educator. Most people, including government officials, don't know the details of complicated fraud schemes until a whistleblower explains the problem. KEMY sees a lot of whistleblowers who are justifiably frustrated by the enormity and pervasiveness of a particular fraud scheme and works to support them in their efforts to stand up to huge systems and relate complicated information to people who simply don't get it at first. Whistleblowing takes persistence, courage, and fortitude. Be prepared.

Exposing fraud against the government is important work. Persist even if eyes glaze over, and people yawn and look at their watches. Eventually, you'll find someone who knows exactly what you are talking about. And people need to know.

If we can help, gather your information, and give us a call.