Accounting Fraud Whistleblower Attorney
Accounting fraud has brought down many major corporations in recent decades, such as Enron and Worldcom. Unfortunately, and despite tightened regulations and new federal securities laws, it does not appear the problem is going away any time soon. Fraud remains endemic to the accounting industry, and its consequences can cause major ripple effects throughout the entire economy. Not only are investors misled by false statements about a company’s financial performance, but the market itself can be manipulated to allow bad actors to reap ill-gotten gains.
The Securities and Exchange Commission (SEC) has the authority to investigate accounting fraud among those companies that fall under its jurisdiction. These investigations can lead to serious criminal and civil penalties and help repair the damage that was done to investors and markets alike. However, the SEC’s work is never done, and there are simply not enough resources to look into and stop every instance of accounting fraud. That’s where whistleblowers come in. If you have information about accounting fraud, you can not only help put an end to it but potentially claim a reward for doing so. Talk to the whistleblower law firm of Oberheiden P.C. today.
Examples of Accounting Fraud
If you work for an accounting firm, a publicly traded company, or some other business in the securities or financial markets, your position as an employee may give you insider knowledge of fraudulent activity. But if you are not sure, consider some of the most common examples:
- Inaccurate revenue statements: There are many ways for a company to deceptively overreport its revenue, for example by failing to account for product returns or refunds. Other ways include reporting sales before they are completed, before payments are actually made, or before important conditions related to the sale have been met.
- Inaccurate expense statements: On the other hand, companies may understate their expenses, for instance by capitalizing regular operating costs or failing to report accounts payable data. A classic form of accounting fraud is deliberately keeping certain expenses or liabilities “off the books,” effectively providing inaccurate accounting data.
- Overstating assets: The value of a company’s assets is an important indicator of financial health, but a company may overstate its accounts receivable, inventory, holdings, and more. Not listing depreciable expenses in reports, and overstating the value of capital assets, are two other examples that fall under this category.
- Understating liabilities: Fraud may include undervaluing a company’s liabilities, which also distorts the actual financial performance of the company. For instance, the business may know that the value of its reserves should be higher but lists a different amount in its records.
- Improper timing: Companies should record revenues and expenses as they occur or during the period in which the benefit or loss from them is realized. But the decision to list these transactions in other quarters or reporting periods could be a deliberate attempt to inflate earnings or conceal losses.
- Inaccurate accounting controls: Companies must maintain proper controls over their internal accounting procedures. These controls are mandated to attempt to avoid the problems listed herein and to ensure that financial reports provide an accurate picture of the company’s finances.
- Channel stuffing: This is the practice of inflating a company’s sales and earnings data by sending retailers in its distribution channels more products than they can sell. Typically, this is done towards the end of a quarter or year so that sales and earnings numbers look better than they really are.
- Cookie jar accounting: During a profitable period, a business may put aside excessive reserves from which the company can draw during lower-profit periods. Doing so creates a misleading image of the company’s performance.
- Auditor independence violations: Auditors are bound to observe independence requirements to ensure that they objectively and impartially perform audits. There are often tell-tale signs that these rules are being broken, such as inappropriate socializing or even romantic relationships between members of the auditing firm and the company being audited.
Put our highly experienced team on your side
Dr. Nick Oberheiden
Founder
Attorney-at-Law
Lynette S. Byrd
Former DOJ Trial Attorney
Partner
Brian J. Kuester
Former U.S. Attorney
Hon. Kevin McCarthy
55th Speaker, U.S. House of Representatives (ret.)
Government Consultant
Mike Pompeo
Of Counsel
Former U.S. Secretary of State
John W. Sellers
Former Senior DOJ Trial Attorney
Linda Julin McNamara
Federal Appeals Attorney
Nicholas B. Johnson
Former Prosecutor
Roger Bach
Former Special Agent (DOJ)
Chris J. Quick
Former Special Agent (FBI & IRS-CI)
Michael S. Koslow
Former Supervisory Special Agent (DOD-OIG)
Ray Yuen
Former Supervisory Special Agent (FBI)
The SEC Whistleblower Program
The above is just a sample of the various types of accounting fraud practiced by businesses. If you have evidence of these practices or other ones which may indicate securities fraud or violations of the Foreign Corrupt Practices Act and Securities Exchange Act, you may be able to submit a whistleblower complaint through the SEC and claim a reward for doing so. Our experienced team can help determine whether the information you have meets such criteria as:
- It must be original: To be original, your information must not currently be known to the public or the government. This means that you also must report what you know first. If someone else has the same information and reports it before you do, they will cut you out of a potential reward.
- It must be specific and detailed: Well-documented evidence is more likely to be useful to the government and thereby support its enforcement efforts against those committing accounting fraud. Hearsay, guesses, speculation, and vague information will not meet this standard.
- It must lead to a successful enforcement action: The government must be able to use your information to enforce accounting standards against firms and auditors who are engaged in fraud. Moreover, the government must recover at least $1 million in sanctions.
- It must be provided voluntarily: If you have evidence of accounting fraud and want to claim a reward for blowing the whistle, you need to be the one to notify the government. If the government sends you a request or demand for information and you provide it, that evidence will probably not qualify you for a reward.
How Our SEC Whistleblower Attorney Can Help You
Oberheiden P.C. is dedicated to helping individuals expose accounting fraud by filing a whistleblower claim. We can help by:
- Determining if you have strong evidence of fraudulent accounting practices
- Acquiring additional evidence, if possible, to strengthen your claim
- Filing the necessary paperwork for an SEC accounting fraud whistleblower complaint
- Communicating with the government and its lawyers and investigators on your behalf
- Ensuring your continued cooperation with the government
- Negotiating for the highest possible whistleblower reward
- Protecting your rights if you experience workplace retaliation because of your status as a whistleblower
You might not be sure whether the evidence you have points to accounting fraud. Let us take a look at your information so we can help you learn more about options on your whistleblower case. Contact us today to begin your accounting fraud whistleblower claim.
FAQs: Filing an Accounting Fraud Whistleblower Complaint
How Do I Prove My Information Is Valuable to the Government?
The government values whistleblower information that is original, detailed, provided voluntarily, and which leads to a successful enforcement action. But the government also rewards whistleblowers who cooperate with their ongoing investigations. Additionally, if your information points to significant accounting fraud, the government will be highly interested in it.
How Much Is My Whistleblower Complaint Worth?
If the government is able to recover at least $1 million in sanctions, and your information meets the above criteria in facilitating that enforcement action, you can seek between 10% and 30% of the money recovered. Having an experienced SEC whistleblower lawyer on your side will help you claim the maximum amount.
What If I Am Unsure Whether My Evidence Is Strong Enough?
Some whistleblowers continually gather or observe evidence of accounting fraud, and may not be sure whether and when they have enough to support a claim. Because we are experienced with accounting fraud whistleblower claims, we can review the evidence you have to determine its strength. You should be aware that if you wait too long and someone else reports what you know first, you won’t be able to claim as SEC whistleblower award.
Can a Whistleblower Be Anonymous?
Many individuals are aware that their employers are engaged in accounting fraud and hurting innocent parties. Despite their desire to become a whistleblower, they worry about facing retaliation for doing so. Fortunately, you can be an anonymous whistleblower. But you must have an attorney represent you in communications with the government. We can assist SEC whistleblower clients.
How Long Should I Expect a Claim to Take?
Accounting fraud whistleblower claims can take a significant amount of time for various reasons. One, the fraud itself could be intricate or novel, and unwinding it while accumulating compelling evidence of wrongdoing takes time. Two, the government wants to make sure that it brings charges against all parties engaged in the fraud to deter future such instances. Finally, the amount of money involved, both for the government’s sanctions and the whistleblower’s reward, could be substantial, so time will be needed to build a good case.
How Do I Know If I’ve Experienced Workplace Retaliation?
Workplace retaliation because of a person’s whistleblower status comes in many forms, not all of which is obvious. It is illegal and you may have the right to seek legal damages against your employer if they are found liable for it. Some examples of workplace retaliation include termination, demotion, denial of a promotion, reduced pay or work hours, reduced access to company benefits and facilities, creation of a hostile workplace environment, and much more. If you believe your employer has discriminated against you because you blew the whistle on accounting fraud, we can help protect your rights.
