Las Vegas, NV (PRWEB) March 31, 2014
A whistleblower recently received $63.9 million for notifying the federal government about an alleged scheme by JP Morgan Chase to defraud the government into issuing “flawed home loans,” according to the Chicago Tribune. Monetary rewards serve as an incentive for whistleblowers to speak out and also send a strong message that such business practices will not be tolerated, according to Las Vegas whistleblower attorney Ruth L. Cohen of Cohen & Padda, LLP.
Cohen based her comments on a Reuters article published in the Chicago Tribune on March 7 about the whistleblower reward.
“While the reward is an important incentive, these types of cases are about more than just money,” Cohen said. “Sizable whistleblower rewards like this one send a clear, strong message to companies that fraudulent activity will not be tolerated. It takes a tremendous amount of courage to come forward and report wrongdoing. That’s why we applaud the federal government for granting this reward to this brave whistleblower. Hopefully, this reward will inspire more people to come forward and speak out when they find corporate malfeasance.”
As part of JP Morgan Chase’s agreement with the federal government, JP Morgan Chase paid a $614 million fine and agreed to “tighten oversight to resolve charges that it defrauded the government into insuring flawed home loans,” according to the article published by the Chicago Tribune.
Specifically, JP Morgan Chase admitted that for more than 10 years, the company “submitted thousands of mortgages for insurance by the Federal Housing Administration or the Department of Veterans Affairs that did not qualify for government guarantees,” according to the Chicago Tribune article.
As a result, the government “ultimately had to cover millions of dollars of losses after some of the bank's loans went sour, resulting in evictions and foreclosures nationwide,” according to the Chicago Tribune article.
The whistleblower who provided the tip to the federal government worked for JP Morgan Chase and its predecessor from 2003 to 2008 as an assistant vice president supervising a government insurance unit, the Chicago Tribune article reported.
Many whistleblowers work for companies accused of breaking the law, according to whistleblower attorney Paul S. Padda of Cohen & Padda, LLP “This case shows that people have the power to speak out against illegal activity occurring within their own company,” Padda said. “Just because people work for large corporations does not mean they don’t have the power to make positive changes there. All it takes is one person with strong convictions to bring an end to a corrupt corporate culture. But it’s also important to realize that such cases can be extremely complicated. Fortunately, whistleblowers do not have to take on their employers on their own. We can help. We’re proud of the work we do and the role we play in society. Our attorneys help honest people make things right every day across the country.”
For more information about what to do if you suspect wrongdoing at your company and the legal options available to whistleblowers in Nevada, call (800) 967-1923 or complete the online contact form.
The Chicago Tribune article cited is “JPMorgan whistleblower gets $63.9 million for mortgage fraud tips.”
About Cohen & Padda, LLP
Serving Las Vegas and all of Nevada, attorneys Ruth L. Cohen and Paul S. Padda have a well-earned reputation for being dedicated, driven former Nevada federal prosecutors who successfully resolve cases for their clients. Cohen & Padda, LLP, handles a wide range of cases, including car accidents, truck accidents, employment law, personal injury, premises accidents, criminal defense and whistleblower cases. Contact Cohen & Padda, LLP, for a free consultation.
Cohen & Padda, LLP
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Las Vegas, Nevada 89103