IRS Gives $104 Million To UBS Whistleblower... Who The DOJ Put In Jail
from the mixed-messages dept
Sometimes it seems that the federal government's left hand has no idea what it's right hand is doing. Bradley Birkenfeld, a former banker for Swiss banking giant UBS, blew the whistle on UBS practices of helping Americans hide their money offshore. For his troubles, the Justice Department charged him, leading to a plea deal in which he plead guilty to fraud conspiracy and was put in jail for a few years. He just got out a month ago... and now the IRS has handed him $104 million for the whistleblowing, which resulted in UBS paying $780 million to the government to avoid prosecution itself. The IRS claims they're doing this to encourage others to blow the whistle on tax fraud... though they might want to warn the DOJ not to put their whistleblowers in prison. That said... $104 million seems somewhat insane. I realize that it may have resulted in the US government getting a lot more money, but $104 million still seems like a giant sum of money to give a guy who, as the government's own efforts show, participated in fraud. If the idea is to "get the word out" to whistleblowers, you would think that smaller sums, still in the millions of dollars, would do the trick...Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: awards, bradley birkenfeld, conspiracy, doj, irs, jail, whistleblowers
Companies: ubs
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Totally worth it
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Well $2 million is a hell of a whole lot less than $104 million...
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Compartmentalisation usually explains seemingly obtuse or perverse cases like this, many government departments really are totally unaware of each other, and often work in opposition to each other in some cases.
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well . . . . .
Seems right to me . . .
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I know I wouldn't do it ... I value my life too dearly for even $100M.
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Furthermore, blowing the whistle is a *lot* more likely to get the DOJ to throw you in jail than to just stay quiet and participate in the crime.
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Bradley Birkenfeld: (looks at his bank account)..............no, comment!!!
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If this is going to spurr an instant wave of whistleblowing is another thing though, a potential whistleblower might want to wait untill more fraud has been comitted to increase the size of the award money. The DOJ not granting immunity to the whistleblower is another thing that would definately deter many whistleblowers.
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Whistleblowing Ain't Easy
You can read about my struggles as a whistleblower exposing the larges bank fraud in history here: http://thoughtforyourpenny.blogspot.com/2012/03/boy-who-cried-force-placed-insurance_02.html
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