by Brian Mahany
Crowd-funding has yet go main stream yet and many such efforts are scams. One that gets our attention and admiration, however, is being run by Edward Seidel. He hopes to ultimately raise $2 million to fund the investigation of whistleblower claims. Investors would have the opportunity to share in any future awards.
While Seidel’s efforts are still in their infancy – Investment News reports he has raised $750 from 14 people – they do focus attention on the importance of whistleblowers in society. Many of the largest frauds in the country only came to light because of whistleblowers.
Siedel’s efforts seem to be focused on SEC cases, however several other laws permit cash awards to tipsters. Those include the federal false claims act, many state false claims statutes, the IRS whistleblower program and the Financial Institutions Reform, Recovery and Enforcement Act. Most of these laws require claimants to be first to file and to have non-public information (if its in the newspaper, it’s not false claims material).
Seidel has figured out that many claims are never filed because they require a significant amount of investigation and due diligence. Often whistleblowers don’t know how to investigate these claims or how to file a lawsuit to claim an award. Investigation and prosecution of these claims takes money.
Our law firm specializes in false claims act cases. These cases require loss to taxpayers or the government. Presently we represent the whistleblower in the largest false claims act pending in the nation; HUD’s $2.4 billion case against Allied Home Mortgage.
In our opinion, whistleblowers are America’s new heroes. By standing up and taking a stand against fraud and corporate greed, they help taxpayers save billions of dollars each year. Most of our clients come forward only after trying to report and correct problems with company management. Usually they come forward only when their claims fall on deaf ears. By filing a formal complaint, their claims must be investigated and be taken seriously. As an added incentive, whistleblowers who file formal complaints are eligible to receive up to 30% of whatever the government collects.
If you think you have evidence of a fraud involving loss to taxpayers – Medicare fraud, HUD violations resulting in shoddy loans or outright procurement fraud – give us a call. All inquiries are protected by the attorney-client privilege and kept in strict confidence.
For more information, contact attorney Brian Mahany. Our whistleblower lawyers handle a wide variety of cases from cases against hospitals to major banks and mortgage lenders. Brian can be reached at or by telephone at (direct).
Mahany & Ertl – America’s Fraud Lawyers and proud supporters of whistlewatch.org. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine; Minneapolis, Minnesota and San Francisco, California. Fraud recovery available in many jurisdictions.
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