OSC Whistleblower Reward

While the OSC Doesn’t Pay Whistleblower Rewards, Compensation May Be Available Through Other Means

The Office of Special Counsel (OSC) is one of several federal authorities that accepts whistleblower complaints. Through its OSC Whistleblower Program, the OSC specifically accepts complaints involving fraud, waste, abuse, and other forms of wrongdoing within the federal executive branch—including the federal contracting and grant sectors.

However, individuals who file complaints (or “disclosures of wrongdoing”) with the Office of Special Counsel are not eligible to receive OSC whistleblower rewards. While some federal authorities have adopted whistleblower reward programs, the OSC has not. With this in mind, individuals who are considering filing a whistleblower complaint with the OSC may also want to consider the other options that allow for whistleblower rewards in enforcement actions.

Benefits of Blowing the Whistle with the Office of Special Counsel (OSC)

Even though OSC whistleblower rewards are not available to those who come forward, there are still several benefits to filing a disclosure of wrongdoing with the Office of Special Counsel. It is also important to note that filing a disclosure with the OSC will be the only option available in some cases, such as certain circumstances in which concerns raised through a federal employer’s internal compliance processes are ignored or inadequately addressed. The benefits of blowing the whistle with the OSC include:

• Exposing wrongdoing that compromises the integrity of the federal government or that wastes taxpayer funds.
• Assisting the federal government in its ongoing fight against fraud, waste, abuse, corruption, and prohibited personnel practices (PPP). 
• Securing protection against retaliation in your employment (or securing remedies for unlawful retaliation in the event of termination or other prohibited action).

For some federal employees (and former federal employees and job applicants), these are reasons enough to come forward. However, when blowing the whistle on wrongdoing with financial implications, it may be possible to secure a whistleblower reward by coming forward through means other than filing a disclosure with the OSC. If you are interested in seeking a financial reward, our whistleblower lawyers can thoroughly assess all of your options, and we can help you come forward through your chosen means—whatever those means might be.

Alternatives to Serving as an OSC Whistleblower that Provide Reward Eligibility

While the OSC does not have a whistleblower reward program, some of its federal counterparts do have programs that provide eligible whistleblowers with the ability to claim financial rewards. In some cases, the OSC’s and these other federal entities’ enforcement authority overlap—meaning that whistleblowers will have a choice of where to file their complaints. Additionally, the False Claims Act broadly prohibits fraud against the federal government, and its qui tam provisions entitle “relators” to whistleblower compensation when they help the U.S. Department of Justice (DOJ) recover taxpayer funds.

With this in mind, while OSC whistleblower rewards are not available, fully eligible whistleblowers may be able to seek financial awards through the following means:

1. Serving as a False Claims Act (Qui Tam) Relator

While OSC whistleblower rewards are not available, individuals who have information about gross mismanagement, gross waste of funds, and other forms of fraud and abuse may be eligible to serve as relators under the False Claims Act. Under the False Claims Act, relators who provide information that leads to a successful enforcement action are generally eligible to receive between 10% and 30% of the funds that the government recovers, depending on the significance of their whistleblower contributions.

The False Claims Act prohibits false and fraudulent claims for reimbursement under federal contracts, grants, and programs, including those supported by misleading financial statements. As a result, if you have information about bribery, corruption, collusion, non-enforcement, or another issue that has resulted in improper payments to a private party, you may be eligible to serve as a False Claims Act relator. While restrictions apply, current and former federal employees can serve as False Claims Act relators in some cases.

2. Filing an SEC Whistleblower Complaint

The U.S. Securities and Exchange Commission (SEC) accepts whistleblower complaints involving bribery of federal officials and other forms of securities-related misconduct affecting the U.S. securities markets. Under the SEC’s whistleblower program, whistleblowers are eligible to receive rewards when they provide information that leads to a successful enforcement action resulting in total monetary sanctions above the program’s threshold. If you are eligible to serve as an SEC whistleblower, our attorneys can prepare and submit your complaint to the SEC and then work with the Commission’s lawyers and investigators on your behalf.

3. Filing a CFTC Whistleblower Complaint

The U.S. Commodity Futures Trading Commission (CFTC) also accepts whistleblower complaints involving bribery, corruption, and trading-related misconduct, and it also has a whistleblower reward program that may apply when an administrative proceeding results in monetary sanctions. If you are eligible to serve as a CFTC whistleblower, our attorneys can prepare your Tip, Complaint, or Referral (TCR) Form, work with the CFTC on your behalf, and then assist with claiming your whistleblower reward if you become eligible to receive one.

4. Filing an IRS Whistleblower Complaint

The Internal Revenue Service (IRS) is among the federal agencies to most recently adopt a whistleblower reward program. If you have information that would warrant enforcement action by both the OSC and the IRS (i.e., information about bribery, corruption, or tax fraud related to a federal contract or grant), you may be able to serve as an IRS whistleblower and establish eligibility for a whistleblower award.

5. Filing a Complaint Under a DOJ Whistleblower Program

The U.S. Department of Justice (DOJ) has established various whistleblower programs, including pilot reward programs that are currently underway. If you are considering filing a whistleblower complaint with the OSC, our lawyers can determine if you are eligible to serve as a DOJ whistleblower as well. If so, we can use our experience as former DOJ attorneys to communicate effectively with the Department on your behalf, and we can seek to obtain a whistleblower reward on your behalf if warranted.

Deciding Where to File Your Federal Whistleblower Complaint

With these options in mind, where should you file your federal whistleblower complaint? While these are all potential options, they are not necessarily options in all cases. As we mentioned above, in certain circumstances, filing a disclosure of wrongdoing with the OSC will be the only option available–including for multiple whistleblowers who come forward jointly. However, if you have multiple options, it is important that you make an informed decision—and this is one of the first areas in which our whistleblower attorneys can help you. When you schedule a free and confidential consultation at Oberheiden P.C., we will:

• Work with you to discern the legal implications of the information you have in your possession.
• Determine if you are eligible to serve as an OSC whistleblower. 
• Determine if you are eligible to file a whistleblower complaint with another federal authority (or in federal court) and seek a whistleblower reward. 
• Help you make an informed decision about how (and whether) to blow the whistle. 
• File your whistleblower complaint and take all necessary additional steps on your behalf if you decide to come forward. 

Throughout the process, we will keep your identity strictly confidential, even as you report misconduct, and we will not share any information with the federal government unless you specifically authorize us to do so. We provide no out-of-pocket cost legal representation to federal whistleblowers nationwide.

FAQs: Exposing Fraud, Waste, Abuse, or Other Wrongdoing as a Federal Employee (or Former Federal Employee)