We’ve told you before about the potential for fraud in government programs intended to protect the “Blue Economy” and how the False Claims Act enables whistleblowers to report wasteful spending on federal programs designed to protect the environment.
However, other whistleblower programs besides the FCA can help safeguard the environment, even if the individuals or corporations involved aren’t contracted by the federal government.
Blowing the whistle on shipping pollution
The International Convention for the Prevention of Pollution from Ships (MARPOL) is the main international convention covering marine pollution by ships. The United States in 1980 passed the Act to Prevent Pollution from Ships (APPS), which makes it a crime to knowingly violate provisions of MARPOL.
Much like the FCA, APPS includes whistleblower provisions that give workers incentives to report shipping pollution. In fact, the law states that an amount up to 50% of the fine issued to violators of the MARPOL protocol can be paid to whistleblowers who gave information leading to conviction.
Whistleblowers were responsible for more than three-fourths of APPS prosecutions during 1993-2017, according to a law firm analysis of 100 cases that was published by Whistleblower Network News. In those cases, the United States obtained over $270 million in sanctions from polluters and paid 206 whistleblowers more than $33 million in rewards,
Given the nature of shipping pollution – for example, only a handful of employees would be aware of illegal dumping of hazardous waste such as oily bilge water in an open body of water, miles from shore – it’s not surprising how many cases involved whistleblower information. In addition to cargo ships and crude oil tankers, cruise ships are also susceptible to violating MARPOL through discharges of sewage or other wastewater.
Ship workers who have witnessed or have knowledge of illegal practices at sea that lead to pollution can become APPS whistleblowers, even if they aren’t U.S. citizens.
A financial angle to climate change
Interestingly, the Securities and Exchange Commission’s whistleblower program could indirectly help counteract climate change. Here’s how:
The SEC has proposed rule changes that would require publicly traded companies to include certain climate-related disclosures in their registration statements and periodic reports, including information about climate-related risks that are reasonably likely to have a material impact on their business and disclosure of their greenhouse gas emissions.
If a corporation isn’t disclosing accurate information about climate risks to their business, or how much greenhouse gas it’s releasing, investors aren’t only misled, but the public lacks a true picture of how the company is contributing to climate change.
If the rule changes are approved, false climate disclosures would violate securities law. Whistleblowers can report violations to the SEC through its whistleblower program, which awards 10% to 30% of the money collected by the government in a successful prosecution.
What do I do if I have information about fraud?
Consulting with a whistleblower attorney is important to ensure your rights are protected and to determine whether you have a basis for a lawsuit. If you are considering reporting any wrongdoing to the government, it’s critical to consult with a knowledgeable attorney to better understand your rights and the potential outcomes of becoming a whistleblower.
Keller Grover has decades of experience helping whistleblowers through the process from start to finish. Contact us today for a free, confidential consultation.