To qualify for a monetary award under most U.S. whistleblower programs, a whistleblower must voluntarily give the government original information — information the government does not already have, drawn from the whistleblower’s own knowledge or analysis rather than from public sources.
In general, information is “original” when it comes from your independent knowledge or independent analysis, is not already known to the agency from another source (unless you are the original source), and is not drawn exclusively from court or administrative proceedings, government reports, audits, investigations, or the news media (unless you are a source of that information).
Each award program defines the term slightly differently.
SEC Whistleblower Program
Under 17 C.F.R. § 240.21F-4(b), information is original if it is derived from your independent knowledge or independent analysis, is not already known to the SEC from any other source unless you are the original source, is not exclusively derived from public proceedings, government reports, or the news media unless you are a source, and was provided to the SEC for the first time after July 21, 2010. Independent knowledge means facts in your possession that are not from publicly available sources; independent analysis means your own evaluation of information that may be public but reveals something not generally known. Learn more about the SEC Whistleblower Program.
Example: An accountant who sees her company booking revenue early to inflate results and reports it to the SEC is providing original information. Forwarding a news article about the same fraud is not.
CFTC Whistleblower Program
Under 17 C.F.R. § 165.2, information is original if it is derived from the independent knowledge or independent analysis of the whistleblower, is not already known to the CFTC from any other source unless the whistleblower is the original source, and is not exclusively derived from public proceedings, government reports, or the news media unless the whistleblower is a source of the information. Learn more about the CFTC Whistleblower Program.
Example: A trader who reports spoofing in the futures market that he personally witnessed is providing original information; forwarding a CFTC press release about the same conduct is not.
Anti-Money Laundering Whistleblower Program
Under 31 U.S.C. § 5323 (administered through FinCEN), original information means information that is derived from the independent knowledge or analysis of a whistleblower, is not known to the Treasury Department or the Attorney General from any other source unless the whistleblower is the original source, and is not exclusively derived from public proceedings, government reports, or the news media unless the whistleblower is a source.
Example: An employee who discovers that her company is deliberately structuring transactions to evade Bank Secrecy Act reporting and reports it to FinCEN or the Department of Justice is providing original information. Learn more about the FinCEN Whistleblower Program.
Motor Vehicle Safety Whistleblower Program
Under 49 U.S.C. § 30172, original information means information that is derived from the independent knowledge or analysis of an individual, is not known to the Secretary of Transportation from any other source unless the individual is the original source, and is not exclusively derived from a judicial or administrative action, a governmental report, hearing, audit, or investigation, or the news media unless the individual is a source. This program is limited to an employee or contractor of a motor vehicle manufacturer, parts supplier, or dealership.
Example: An engineer who learns from internal testing that a part fails dangerously and that the company is concealing it, and reports it to the Department of Transportation, is providing original information.
IRS Whistleblower Program
The IRS requires a whistleblower to submit specific and credible information that the whistleblower believes will lead to collected proceeds, filed on Form 211, “Application for Award for Original Information”. The award percentage is reduced for claims based on information from public sources, or if the whistleblower planned and initiated the actions that led to the violation. Learn more about the IRS Whistleblower Program.
Example: An employee who files Form 211 with firsthand knowledge of a company’s offshore tax-evasion scheme qualifies; a claim based mainly on a published government audit report can still qualify but at a reduced award percentage.
If you have original information about a fraud or violation of the various laws above, get in touch with one of our whistleblower attorneys today for a free and confidential consultation.
