 |
|
|
CFC # 10222 |
|
||
|
|
||
|
|
|
||
|
|
|
|
|
 |
|
|||||||||
|
|
|
|
||||||||
|
Back to Past Press Main
Washington, D.C. December 13, 2006. The National Whistleblower Center, a nationally recognized FBI Watchdog group, has released to the public extensive sworn and documentary evidence concerning the FBI’s actual response to the attacks of September 11, 2001. The documents include the sworn deposition of every major FBI manager responsible for the creation the FBI’s post September 11 counterterrorism division and the implementation of the FBI’s “War on Terror.” Sworn depositions of Director Robert Mueller, former Director Louis Freeh and numerous executive assistant directors and assistant directors for the bureau’s counterterrorism program are included. The NWC is making this unprecedented release in order to give the American public the inside and uncensored view of the domestic response to the September 11 attacks. The NWC strongly encourages every American concerned with the prevention of the next September 11 to carefully evaluate this documentation and use the materials to insist the U.S. government defend our democracy from a new attack. The depositions and FBI documents were obtained as a result of a lawsuit filed by Bassem Youssef, a Unit Chief currently employed in the FBI’s Counterterrorism Division. Prior to holding his current position, Mr. Youssef coordinated the national counterterrorism investigation into the Islamic Group (the organization responsible for the first World Trade bombing), was the recipient of the prestigious “Director of Central Intelligence” award and was tapped by former FBI Director Louis Freeh to establish the FBI’s field office serving seven Middle Eastern countries, including Saudi Arabia, Yemen and Kuwait. Mr. Youssef is the highest ranking Arab-American agent employed by the FBI. In July 2006, the Department of Justice’s Office of Professional Responsibility concluded that the FBI illegally retaliated against Mr. Youssef because Mr. Youssef had made whistleblower disclosures to the Director of the FBI and a Member of Congress. Click here to view the documents. FBI Terror Expertise Papers to Come Out We urge every American to strongly support Mr. Youssef’s case and make a donation to the NWC’s general fund to cover the costs and expenses incurred in defending Mr. Youssef’s right to blow the whistle on FBI misconduct and oppose discrimination against Arab Americans within the FBI. New Fannie Mae Whistleblower Washington, D.C. December 7, 2006. In 2004, Roger Barnes, a former Fannie Mae accounting manager, blew the whistle on Fannie Mae for large irregularities in financial records which ultimately led to the toppling of Fannie Mae’s CEO and other executives. A new Fannie Mae whistleblower has emerged this week, detailing the continuing culture of corruption within the mortgage-finance giant. Thomas S. Inman, who was a Fannie Mae financial manager, was the latest replacement for Roger Barnes. Mr. Inman investigated system errors that he found to be orders of magnitude larger than the estimates Fannie Mae had previously provided to one of its federal regulators, the Office of Federal Housing Enterprise Oversight (OFHEO). When he reported these errors internally he was swiftly removed from restatement work. Not long after, he met the same fate as Mr. Barnes when he was terminated without notice and escorted off Fannie Mae premises. Mr. Michael Kohn, of the Washington, D.C. based National Whistleblower Center, represents Mr. Inman in a Sarbanes-Oxely whistleblower complaint before the Department of Labor. It was this complaint that prompted the OFHEO to open an investigation into Mr. Inman’s allegations. “Fannie Mae management has not learned its lesson. In fact, a mere two years after a major accounting scandal that reached all the way to the CEO’s office, the culture of corruption continues to exist,” stated Mr. Kohn. Watchdog Group Calls for Oversight Hearings Washington, D.C. December 5, 2006. The National Whistleblower Center, a nationally recognized government watchdog group, is calling for Congressional oversight hearings into the FBI’s handling of its counterterrorism program. Last night FBI whistleblower Bassem Youssef was the subject of a story on NBC Nightly news, in which he discussed, for the first time, his allegations that the FBI’s lack of subject matter experts has harmed and in some cases crippled the U.S. counterterrorism program. In calling for Congressional hearings into the Youssef case, the National Whistleblower Center issued the following statement: Mr. Bassem Youssef is currently a Unit Chief employed in the FBI’s Counterterrorism Division. Although the FBI gave Mr. Youssef written consent to be interviewed by NBC-TV, the FBI refused to grant him permission to provide case-specific examples as to how the FBI’s lack of expertise has harmed America’s counterterrorism efforts. The National Whistleblower Center firmly believes that without full and complete public disclosure of prior problems within the counterterrorism program, grave deficiencies which threaten national security will never be corrected. The only forum available to Mr. Youssef to fully and accurately describe how America has been harmed by the failure of the FBI to recruit, hire and promote Arabic speaking agents/counterterrorism subject matter experts, is through a Congressional oversight hearing. We hope that the new Congress will make such hearings a high priority. Link to NBC Nightly News coverage: http://www.msnbc.msn.com/id/16042604/ High Ranking FBI Counterterrorism Whistleblower Goes Public Washington, D.C. December 4, 2006. Mr. Bassem Youssef, a supervisory unit chief currently employed in the FBI’s Counterterrorism Detection Unit (CTD), will speak out publicly for the first time regarding grave deficiencies in America’s counterterrorism program. Mr. Youssef’s case will be highlighted on NBC Nightly News segment airing tonight. This afternoon, NWC released an action alert calling upon members of the public to demand that the FBI not retaliate against Mr. Youssef. The alert stated as follows: FBI Whistleblower Needs Your Help Tonight! Help protect FBI Supervisory Special Agent Bassem Youssef from retaliation when he appears on NBC Nightly News tonight,December 4, 2006 to tell the truth about ethnic discrimination and serious deficiencies within the FBI’s counterterrorism program which are undermining national security. Take action by sending a message to your public officials insisting that they protect the rights of Mr. Youssef , and all government employees to blow the whistle on fraud, corruption, waste, and discrimination. Did you know that senior counterterrorism officials at the FBI don’t know the difference between Shiite and Sunni Muslims? Did you know that the FBI currently has no senior counterterrorism officials who can speak Arabic? If you do, chances are you have heard some of the alarming revelations that were brought to the public attention in a whistleblower lawsuit filed by Supervisory Special Agent (SSA) Bassem Youssef. Mr. Youssef is the FBI’s highest ranking counterterrorism official to “blow the whistle” on the FBI’s gross mismanagement of the War on Terror. He is the highest ranking FBI agent who is fluent Arabic. Notably, Mr. Youssef was the recipient of the highly prestigious DCI (Director of Central Intelligence) award for his Counterterrorism work in the Middle East. Before the Bush Administration came to power, Mr. Youssef was highly praised by the former FBI Director for his effective liaison skills between U.S. and Middle Eastern intelligence agencies. In spite of his qualifications, under this current administration the FBI has blacklisted Mr. Youssef and prevented him from using his Arabic language skills and cultural experience to aid the 9/11 investigation. When he brought this discrimination, and other concerns, to his superiors and his Congressman, Mr. Youssef was denied a promotion, transferred, and stripped of all operational counterterrorism duties. In January, a report from the Office of Professional Responsibility (OPR) found that there was “sufficient evidence” to believe that the FBI’s actions against Mr. Youssef were retaliatory. The FBI leadership has a history of harsh retaliation, and they will stop at nothing to silence critics of the Bureau. By going public, Mr. Youssef has placed himself in harm’s way. The FBI has retaliated against every whistleblower who has had the courage to expose wrongdoing to the news media. Mr. Youssef still works at the FBI and needs your support today. Take action by sending a message to your public officials insisting that they protect the rights of Mr. Youssef and all government employees to blow the whistle on fraud, corruption, waste, and discrimination. FBI Admits That NO Top Counterterrorism Agents Can Speak Arabic Washington, D.C. October 11, 2006. Today the National Whistleblower Center released a copy of a sworn affidavit of Michael J. Heimbach, the Section Chief for the FBI’s top operational counterterrorism program – the International Terrorism Operations Section (“ITOS”). In this affidavit, Mr. Heimbach admitted that the FBI has no agents employed within ITOS who are fluent in Arabic. He also conceded that there are “no agent positions” in ITOS that “utilize the Arabic language as part of their ITOS duties or responsibilities.” The President of the National Whistleblower Center, and an attorney for FBI whistleblowers (including Mr. Youssef), Mr. Stephen M. Kohn, issued the following statement: Five years after the tragedy of 9/11, the FBI is still unprepared to defend national security against Middle Eastern terrorist threats. The fact that the FBI’s critical operational unit dedicated to the War on Terror (ITOS) lacks even one agent fluent in Arabic is shocking. The fact that none of the FBI’s post-9/11 “vacancy announcements” for ITOS positions listed Arabic language skills or knowledge of the Middle East as either mandatory or “preferred” qualifications is simply shocking. A copy of the Heimbach affidavit is attached below. Additionally, attached is a copy of an FBI analysis of Arabic speaking agents and a copy of a report by the Department of Justice Office of Professional Responsibility (OPR) which supported assigning FBI agent Bassem Youssef (who is a fluent Arabic speaking agent) to a position in ITOS.
Tax Experts Praise Murphy Decision as “Momentous” and “Epochal”
Since 1996 the National Whistleblower Center has vigorously opposed the taxation of damages designed strictly to make whistleblowers “whole” for the damages they suffer. Before the Court of Appeals, Marrita Murphy was represented by the NWC’s General Counsel for Forensic Justice and the Chairperson of the NWC’s Board of Directors. Whistleblower Disclosures Force Companies
Zeppetella’s case was based on the evidence and testimony obtained by a whistleblower inside Second Chance. Dr. Aaron Westrick, who was fired from Second Chance after he gave deposition testimony in the Zeppetella case, provided unrebutted testimony that Second Chance and Toyobo managers had detailed knowledge of the vests’ problems. Dr. Westrick also disclosed confidential corporate documents which verified the concern that continued sale of the vests would result in the death of a police officer. Second Chance had ordered the shredding of this document. Dr. Westrick refused to follow that instruction and provided a copy of the memo to the U.S. Department of Justice. Dr. Westrick is currently cooperating with a major federal civil and criminal investigation into misconduct related to the manufacture, sale and marketing of the defective vests. Bulletproof vests under scrutiny Zeppetella trial: Ex-exec says body-armor firm knew vests degraded, Signonsandiego News Services; August 10, 2006 Officer's widow awarded $3.6 million in faulty vest suit Cop's widow wins lawsuit over vest Whistleblower Wins Major Tax Ruling IRS taxing of non-wage damages is “unconstitutional”
The sole issue, decided by the court, was whether or not non-wage damages for injuries to emotional distress and damage to reputation were taxable as income. The case did not involve the taxing of any wages or other income. Since 1996, when Congress, for the first time, changed the law to tax such emotional distress and reputational harm damages awarded in civil suits, hundreds of whistleblowers and other victims of discrimination have been forced to pay taxes on "make whole" remedies - regardless of the extent of the harm. In today’s opinion, the court ruled as follows: Marrita Murphy brought this suit to recover income taxes she paid on the compensatory damages for emotional distress and loss of reputation she was awarded in an administrative action she brought against her former employer. Murphy contends that under § 104(a)(2) of the Internal Revenue Code (IRC), 26 U.S.C. § 104(a)(2), her award should have been excluded from her gross income because it was compensation received 'on account of personal physical injuries or physical sickness.' In the alternative, she maintains § 104(a)(2) is unconstitutional insofar as it fails to exclude from gross income revenue that is not 'income' within the meaning of the Sixteenth Amendment to the Constitution of the United States. We hold, first, that Murphy's compensation was not 'received ... on account of personal physical injuries' excludable from gross income under § 104(a)(2). We agree with the taxpayer, however, that § 104(a)(2) is unconstitutional as applied to her award because compensation for a non-physical personal injury is not income under the Sixteenth Amendment if, as here, it is unrelated to lost wages or earnings. Murphy v. IRS, Slip Op. at 2 (emphasis added). The court also held: Murphy's compensatory award in particular was not received “in lieu of” something normally taxed as income; nor is it within the meaning of the term “incomes” as used in the Sixteenth Amendment. Therefore, insofar as § 104(a)(2) permits the taxation of compensation for a personal injury, which compensation is unrelated to lost wages or earnings, that provision is unconstitutional. Murphy v. IRS, Slip Op. at 24 (emphasis added). David K. Colapinto, who successfully argued the case, said, “The government had the audacity to argue that non-wage compensatory damages for emotional distress and loss of reputation can be taxed as income because the economic value of human life is zero. The taxing of non-wage damages is highly destructive and punishes whistleblowers and other civil rights plaintiffs for prevailing in their cases. Hopefully, today’s ruling will stop this arcane and regressive policy.” Stephen M. Kohn, the Chairperson of the National Whistleblower Center, also said the following: For over four years the Center has supported Ms. Murphy's challenge to the cruel and discriminatory practices of the IRS. By taxing their "make whole" remedies, the IRS ensured that no whistleblower could ever receive justice. Instead of limiting tax liability of prevailing whistleblowers to wage claims, the IRS - with wanton disregard to the U.S. Constitution - imposed taxes on whistleblowers for their non-wage, emotional distress and reputational harm damages. These actions resulted in numerous injustices and undermined Congress's intent to ensure that whistleblowers - and other victims of intentional discrimination, were made whole. D.C. Circuit Strikes Down Tax On Emotional Damages Court Ruling in Damages Case Deals Big Setback to the IRS Murphy v. United States, No. 05-5139 DOJ OPR Rules In Favor of Leading
Washington, D.C. July 18, 2006. The Department of Justice Office of Professional Responsibility (“OPR”) found that the Federal Bureau of Investigation (“FBI”) violated the Whistleblower Protection Act and engaged in a “prohibited reprisal” against FBI Supervisory Special Agent/Unit Chief Bassem Youssef in retaliation for his “protected” whistleblower “disclosure.” The OPR report, released today by Senator Charles Grassley (R-Iowa), concluded as follows: “Based on the results of our investigation” OPR found “sufficient” “evidence to establish reasonable cause to believe that the FBI’s failure to [place Mr. Youssef in an operational counterterrorism position] was retaliatory.” OPR Report, p. 12. Mr. Stephen Kohn, the President of the National Whistleblower Center and Mr. Youssef’s lead attorney issued the following statement: “DOJ OPR got it right: the FBI’s failure to assign its highest ranking Arabic speaking agent to fight on the front lines in the War on Terror was reckless and retaliatory.”
Prominent Civil Rights Leaders Washington, D.C. July 13, 2006. The National Whistleblower Center announces the establishment of a defense fund for Dr. Marsha Coleman-Adebayo, a nationally recognized whistleblower employed by the U.S. Environmental Protection Agency (“EPA”). After winning a major trial in U.S. District Court for the District of Columbia, in which the jury found EPA guilty of illegal discrimination against her, Dr. Coleman-Adebayo became the leading force behind the passage of a major civil rights-whistleblower protection law, the “No FEAR Act of 2002.” Unfortunately, EPA’s highest managers have continued to harass Dr. Coleman-Adebayo. In order to force her resignation from the Agency, the EPA has refused to provide necessary medical accommodations for Dr. Coleman-Adebayo A national defense fund has been formed to provide Dr. Coleman-Adebayo the resources necessary to continue her fight for civil rights and whistleblower protections for all federal employees. The fund can accept donations online on our Donate Now page or by mail at P.O. Box 3768, Washington, D.C 20027. Stephen M. Kohn, President of the National Whistleblower Center, issued the following statement: Dr. Coleman-Adebayo led the successful efforts for the first civil right and whistleblower protection law passed in the 21st century. The Administrator of EPA has attempted to unethically use Dr. Coleman-Adebayo’s medical condition to force her resignation from federal employment. One word describes this conduct: despicable. The Center announced the formation of the fund at a demonstration led by the Reverend Walter Fauntroy Jr., joined by other leading whistleblower and civil rights activists, at EPA Headquarters. National Whistleblower Center Proposes Legislation to Restore Whistleblower Rights Washington, D.C. – July 4, 2006. In testimony submitted before the House Committee on Government Reform, the Chair of the National Whistleblower Center, Stephen M. Kohn, proposed new legislation which would create the first comprehensive national whistleblower protection law. The legislation, the Protecting Honest Americans on the Job Act of 2006 was proposed in order to promptly close the loopholes in whistleblower protections caused by the Supreme Court’s ruling in Garcetti v. Ceballos. In that case, the Supreme Court stripped most public employees of whistleblower protection when it upheld the discipline of Mr. Richard Ceballos based solely on Mr. Ceballos’ report of “serious misrepresentations” in a sworn affidavit.
Protecting Honest Americans on the Job Act of 2006 would: In his testimony before the House Government Reform Committee, Mr. Kohn, explained why the new legislation was necessary:
“…without a legislative response to Garcetti v. Ceballos, government employees who report valid concerns regarding the violation of federal laws will not have adequate protection. Those who “speak the truth” and protect the public interest will be at-risk for retaliation. Some will lose their jobs, their careers and their good names simply for disclosing serious misconduct to the wrong person.” AP Enterprise: 9/11 thefts not prosecuted June 16, 2006 As firefighters searched for survivors after the Sept. 11 attacks, heat from the World Trade Center's smoldering ruins burned the soles off their boots. They needed new ones every few hours, and Chris Christopherson made sure they got them.
A Minnesota company went unpunished for Sept. 11 thefts after the government discovered FBI agents and other government officials had stolen artifacts from New York's Ground Zero. (June 16) The disaster specialist was proud to dispatch replacement boots from the Long Island warehouse of a company paid by the government to manage rescue supplies donated by Americans. Then came the moment that crushed Christopherson's faith. His employer dispatched trucks to the warehouse and loaded hundreds of thousands of dollars worth of donated bottled water, clothes, tools and generators to be moved to Minnesota in a plot to sell some for profit, according to government records and interviews. Dan L'Allier said he witnessed 45 tons of the New York loot being unloaded in Minnesota at his company's headquarters. He and Christopherson complained to a company executive, but were ordered to keep quiet. They persisted, going instead to the FBI. The two whistleblowers eventually lost their jobs, received death threats and were blackballed in the disaster relief industry. But they remained convinced their sacrifice was worth seeing justice done. Whistleblower Groups Urge Senators to Close Loophole in Legislation Washington, DC, June 15, 2006. Today the heads of two whistleblower advocate groups sent a letter urging the Senate Committee on Homeland Security and Governmental Affairs to close a loophole in pending legislation, the Federal Employee Protection of Disclosure Act. In the letter, the Chairman of the National Whistleblower Center, Stephen M. Kohn and the Director of the National Security Whistleblowers Coalition, Sibel Edmonds, explained the potential harm to whistleblowers if this issue is not addressed and expressed their support of the other sections of the bill. NWC Chairman Discusses Supreme Court Ruling Washington, D.C., June 3, 2006. Stephen M. Kohn, Chairman of the National Whistleblower Center, appeared on CSPAN’s Washington Journal to discuss the impact of the Supreme Court’s ruling in Garcetti v. Ceballos. Supreme Court Undermines Public Employee Whistleblowing 5-4 Majority Strips Most Government
“Almost every major credible whistleblower exposed wrongdoing as part of their ‘professional duties,’” stated Stephen M. Kohn, Chairman of National Whistleblower Center. “That is the definition of whistleblowing. The ruling is a victory for every crooked politician in the United States,” Kohn Said. “The Court struck at the heart of whistleblowing: When an employee learns of corruption as part of his or her ‘official duties,’ and exposes the wrongdoing, five Supreme Court judges have granted permission to fire the honest public employee,” Kohn added. As a result of the five member majority decision, a person who burns the American flag is protected from retaliation, but an honest public employee who exposes waste, fraud and corruption can be fired. The decision defies common sense,” Kohn said. Justice Kennedy authored both the decision protecting flag burning, and today’s decision in Garcetti v. Ceballos. Federal “Title 42” Employees Granted Whistleblower Protection Washington, D.C., May 9, 2006. The United States Merit Systems Protection Board (MSPB) unanimously overturned the decision of an MSPB judge which had stripped all “Title 42” federal employees of their protections under the Whistleblower Protection Act (“WPA”). The MSPB ruling sets important national precedent ensuring that the thousands of Title 42 federal employees – many working in highly sensitive health and safety positions within the federal government – are fully protected under the whistleblower laws. The case arose when Dr. Jonathan Fishbein, a high-ranking National Institutes of Health’s Division of AIDS safety manager was terminated after he disclosed serious violations of “Good Clinical Practices” which are designed to protect human subjects who participate in clinical trials concerning AIDS mediations. After his discharge, Dr. Fishbein sought protection as a whistleblower. The Office of Special Counsel and the MSPB judge threw out his case. In his November 9, 2004 decision, MSPB judge Raphael Ben-Ami, ruled that “Title 42 employees” are not protected under the WPA. In an order dated April 21, 2006, the MSPB reversed the lower court judge. The full Board held that the Whistleblower Protection Act was “remedial legislation” that should be “liberally” interpreted in order to “strengthen and improve” the rights of federal employees to disclosure wrongdoing [page 4]. The Board further held that Title 42 employees “properly appointed” to their positions would be covered under the WPA [page 9]. Dr. Fishbein’s attorney, Mr. Stephen Kohn, issued the following statement: The MSPB closed a dangerous loophole. The Board’s decision provides whistleblower protections to thousands of federal employees engaged in highly sensitive work directly related to public health and safety. Dr. Fishbein took a courageous stand in demanding full whistleblower protection in the face of a hostile federal bureaucracy. He is now fully vindicated. Other Title 42 employees with information about wrongdoing can now blow the whistle and obtain protection. Govt Doctors Get Whistleblower Protection Supreme Court Hears Arguments in Employee Retaliation Case April 17, 2006, Washington, DC. Today the Supreme Court hears oral arguments in the case of Burlington Northern Santa Fe Railway v. White. At issue is whether an employer may be held liable for retaliatory discrimination for any adverse treatment that would "reasonably likely to deter" an employee from engaging in protected activity. This case involved a female employee who complained that her supervisor was sexually harassing her. After the employee reported the harassment she was transferred to a more physically difficult assignment and suspended for 37 days. The Sixth Circuit held that the railroad’s actions against the employee were “materially adverse” actions. The Railroad is asking the Supreme Court overturn the Sixth Circuit’s ruling. “All whistleblowers should be deeply concerned about the outcome of this case. If the Supreme Court reverses the Sixth Circuit’s decision, employers will be given the green light to harass whistleblowers with impunity” stated Stephen M. Kohn, Chairman of the National Whistleblower Center. The Supreme Court case is file 05-259. A decision is expected by July, 2006. National Whistleblower Center Strongly Condemns Convertino Prosecution Washington, DC, March 30, 2006 – The National Whistleblower Center strongly condemns the March 29, 2006 indictment of former federal prosecutor Richard Convertino. Mr. Convertino, a former award-winning Assistant United States Attorney, disclosed significant deficiencies in the Ashcroft Justice Department’s “war on terror.” After being warned not to testify before a Senate oversight hearing, DOJ stripped Mr. Convertino of his prosecutorial responsibilities and “leaked” highly derogatory information to the press about Mr. Convertino. Instead of backing down, Mr. Convertno filed a Privacy Act lawsuit against DOJ and publicly criticized DOJ’s response to 9/11. Mr. Convertino’s criticisms received national media attention, including an in-depth review by U. S. News and World Report and a series of articles published by the Associated Press. Justice Department officials continuously warned Mr. Convertino to desist from publicly criticizing the Department of Justice. After He refused to be silenced, the DOJ combed Mr. Convertino’s distinguished 16 year history as a prosecutor in order to identify any form of misconduct. Eventually, DOJ indicted Mr. Convertino on highly suspicious and implausible allegations that he improperly introduced a photo into evidence at one hearing, and that he improperly requested that a defendant’s sentence be reduced in a second hearing. Mr. Convertino has pleaded “no guilty” and intends on vigorously contesting these charges at trial. Mr. Convertino is being defended by two former DOJ prosecutors. Kris Kolesnik, the Executive Director of the National Whistleblower Center, issued the following statement concerning Mr. Convertino: “This investigation and now indictment of Mr. Convertino by the Justice Department has been meant from the very beginning to disgrace and discredit him, derail his career and ruin him financially. It’s a vendetta. “Unfortunately, Convertino was never given a chance to confront his accusers on a factual basis. The Whistleblower Center supports Mr. Convertino’s efforts to vigorously defend against this retaliatory prosecution and will continue to actively assist Mr. Convertino’s Privacy Act/whistleblower lawsuit. This lawsuit is designed to hold accountable those DOJ officials who violated the law when they leaked highly derogatory information about Mr. Convertino to the press in violation of the civil and criminal provisions of the Privacy Act.” Mr. Convertino, now in private law practice in Plymouth, Michigan, recently successfully defended Michigan State Trooper (Mr. Jay Morningstar) who had been charged with murder related to an on-duty shooting incident. A jury found Mr. Morningstar “not guilty.” A defense committee has been established to support Mr. Convertino and publicize his case through an informative web site located at http://www.convertino.org/ Congressman Markey Introduces March 9, 2006. Washington, D.C. Congressman Edward Markey introduced a bill today in the U.S. House of Representatives to “improve whistleblower protections.” The proposed law, which is modeled on the Sarbanes-Oxley corporate whistleblower statute and protects all federal employees and contractors. In addition to reinstatement, it also permits wrongfully terminated whistleblowers to collect back pay, compensatory damages (which includes compensation for emotional distress and loss of reputation), attorney fees, treble damages and punitive damages up to 5 million dollars. Stephen M. Kohn, the Chairman of the National Whistleblower Center, issue the following statement: Congressman Markey’s legislation should be endorsed by every advocate for whistleblower protection. For the first time federal employees and contractors will have the same rights as private sector corporate employees. The legislation closes the numerous loopholes in current federal laws and permits whistleblowers to recover realistic damages. If passed, for the first time in American history, millions of federal employees and contractors will have adequate whistleblower protections. Taxpayers will save billions of dollars from unethical contractors and government employees will be able to realistically report waste, fraud and abuse in all government agencies. Congressman Markey’s legislation represents a most significant advancement in real government accountability. Markey’s Press Release: http://markey.house.gov/index.php?option=content&task=view&id=1301&Itemid=125 Senate Judiciary Committee Leadership Bi-Partisan Request Questions FBI Washington, D.C., February 16, 2006. The Chairman, Ranking Member and senior Republican member of the Senate Judiciary Committee requested the Department of Justice Office of Inspector General (“IG”) to open a formal investigation into FBI retaliation against agents who have raised concerns about “deficiencies in the war on terror.” The Committee members raised specific concerns over the treatment of Mr. Bassem Youssef, a senior manager within the FBI’s Counterterrorism Division. Mr. Youssef, who is the highest ranking Arab-American FBI agent, made disclosures to FBI Director Mueller regarding “abuse(s) of authority” and “substantial and specific danger(s) to the public” caused by the FBI’s “mismanagement” of its counterterrorism program. The letter was signed by Senate Judiciary Committee Chairman Arlen Specter, the Ranking Member of the Committee, Patrick Leahy, and a senior member of the Committee, Charles Grassley. Mr. Stephen M. Kohn, an attorney for Mr. Youssef and the Chairman of the Board of Directors of the National Whistleblower Center, issued the following statement regarding the Judiciary Committee letter: Based on his extensive experience successfully battling Middle Eastern-based terrorist organizations, Mr. Youssef developed significant concerns that the FBI’s current management policies did not adequately protect the American people from another terrorist attack. Mr. Youssef raised these concerns with the Director of the FBI. After raising these concerns, the FBI retaliated against Mr. Youssef and stopped his transfer into the FBI’s elite anti-terrorism unit. Out of spite, and contrary to the public safety Mr. Youssef was forced to work at a job in which his extensive knowledge of the Middle East counterterrorism operations and his fluency in Arabic were not utilized. By retaliating against Mr. Youssef, the FBI “cut off its nose to spite its face.” President Signs Deficit Reduction Act Which Washington, D.C. February 9, 2006. Yesterday President Bush signed the Deficit Reduction Act. The Act contains monetary incentives to state governments for enacting False Claims Act (“FCA”) provisions which are equivalent to the federal FCA. Since it was amended in 1986 the federal False Claims Act has proven to be the strongest whistleblower protection law in the United States. In addition to prohibiting the wrongful discharge of employees who “blow the whistle” on fraud against the federal government, the law contains a “qui tam” provision which permits whistleblowers to share in any recovery obtained by the United States in a contract-fraud case. In 2005 alone the federal government recovered over 1 billion dollars in fraud. Because of the success of the federal law, a number of states and municipal governments have enacted similar legislation permitting employees to “blow the whistle” on fraud in state and local government contracts. State and local governments which have enacted FCA’s include the District of Columbia, New York City, the Commonwealth of Virginia, and the States of California, Florida and Texas. In a statement released by Sen. Chuck Grassley, chairman of the Committee on Finance, the senator said, “The False Claims Act has been the federal government’s number one tool for fighting fraud, waste and abuse for the past 20 years. The passage of the Deficit Reduction Act marks a new day for the False Claims Act. It enhances and strengthens this valuable tool for fighting fraud and waste in government programs.” The Chairman of the Board of Directors of the National Whistleblower Center issued the following statement: “State governments no longer have any excuse not to enact local versions of the highly successful federal False Claims Act (“FCA”). The FCA prohibits the wrongful discharge of employees who disclose contractor fraud in government-financed projects. Every state and local government has a duty to protect the taxpayers money. The FCA has proven the most successful law in preventing and exposing corruption in publicly financed projects. Now that the federal government is enacting direct monetary incentives to state governments which enact local versions of the FCA, taxpayers should insist that FCA are immediately passed in every state. The best way to weed out corrupt contractors is to protect and reward those courageous “insiders” who risk their careers to protect the public interest. It has worked in the context of federal contracts, it will also work in the context of state contracts.” Any employee with information on fraud, misconduct or mis-charging on any government-sponsored project is strongly encouraged to report these concerns to the confidential Report Fraud Now hotline sponsored by the National Whistleblower Legal Defense Fund. All communications to this hotline are confidential and protected under the attorney-client privilege. New York City Enacts New False Claims Act New York, New York. January 19, 2006. Despite limited media exposure, New York City recently enacted a local False Claims Act (FCA). New York City is now one of at least sixteen states or municipalities which have passed laws to protect local governments from contractor fraud. These laws are modeled directly after the federal False Claims Act. The New York City FCA not only provides for financial penalties, but it also encourages whistleblowers to expose fraud by permitting successful plaintiffs to obtain awards up to as much as 30% of funds they help recover. Stephen M. Kohn, Chairman of the Board of Director’s for the National Whistleblower Center stated, “Enacting municipal False Claims Acts is fast becoming a vital and powerful tool in protecting taxpayers from fraud. Since the federal government passed the first FCA, the taxpayers have recovered billions of dollars from fraudulent federal contractors. It is time for state and local governments to follow this very successful precedent.” The National Whistleblower Center strongly urges any person who suspects such misconduct to confidentially report the fraud through the National Whistleblower Legal Defense and Education Fund’s Report Fraud Now program. Michigan Enacts Medical False Claims Act Lansing, Michigan. January 3, 2006. Michigan Governor Jennifer M. Granholm today signed legislation to combat Medicaid fraud by providing incentives for citizens who suspect fraud against Michigan’s Medicaid program to come forward and report it to authorities. Under the law new Michigan law, employers are prohibited from penalizing employees who initiated, assisted, or participated in an investigation or court action under the Medicaid False Claim Act. As an incentive to encourage citizens to report suspected fraud, whistleblowers could be rewarded with a certain percentage of the recovered funds if the lawsuit is successful. The legislation is part of a nationwide trend within states and municipalities to enact local versions of the highly successful whistleblower provisions of the federal False Claims Act. Other states which have passed versions of the FCA are Virginia, Illinois, Tennessee, Florida, California and the District of Columbia. Any person who suspects fraud or misconduct in the administration of a federal or state grant or contract is strongly urged to confidentially report the fraud through the National Whistleblower Legal Defense and Education Fund’s Report Fraud Now program. |
In a recent court victory, whistleblower Marrita Murphy successfully challenged the constitutionality of taxing compensatory damages in civil rights/whistleblower cases. In August 2006, a unanimous panel of the U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of Ms. Murphy and declared unconstitutional a special tax Congress had passed in 1996, which targeted civil rights victims who received compensation for emotional distress damages. That decision, 
San Diego, September 7, 2006. A jury returned a verdict of over 2.5 million dollars against two companies, including Toyobo Co. Ltd., a major Japanese manufacturing corporation, based on their sale and marketing of defective “zylon” bullet proof vests to police officers throughout the United States. Police officer Tony Zeppetella was killed after a bullet passed through his Zylon vest and inflicted a fatal chest wound. For a number of years, Toyobo, along with it’s American partner, the now bankrupt Second Chance Body Armor, hid the defects in the vest from their police customers. A jury found the companies liable for failing to warn policemen about the defects in the vests, and awarded Officer Zeppetella’s widow 2.5. Million dollars in damages. 
|
|
|
©1997-2007 National Whistleblower Center & NWLDEF P.O. Box 3768, Washington, DC 20027 |
|
|
| [Press 2006] |